GBP/USD Daily Outlook 05-April-23

GBP/USD Intraday Outlook and Analysis

GBP/USD’s rally is progressing, and the intraday bias remains on the upside at this point. The uptrend from 1.0356 should target the 1.2764 Fibonacci level first. A firm break there will target the 61.8% projection of 1.0356 to 1.2449 from 1.1806 at 1.3100. On the downside, falling below 1.2398 minor support will shift intraday bias neutral first. However, any retreat should be contained above the 1.2208 resistance-turned-support to initiate another rally.

In the broader picture, the rise from the 1.0356 medium-term bottom (2022 low) is progressing towards the 61.8% retracement of 1.4253 (2021 high) to 1.0356 at 1.2764. A sustained break there will strengthen the case for a long-term bullish trend reversal. A further break of the 61.8% projection of 1.0356 to 1.2449 from 1.1806 at 1.3100 could trigger an upside acceleration to the 100% projection at 1.3900. For now, this remains the favored scenario as long as the 1.1806 support holds, even in the event of a deep pullback.