GBP/USD Daily Outlook 27-MARCH-23

GBP/USD Daily Outlook and Analysis

The intraday bias for GBP/USD is currently neutral, with an anticipated increase as long as the minor support of 1.2182 remains unbroken. A breakthrough of 1.2347 on the upside would aim for the resistance zone between 1.2450 and 1.2451. A strong break beyond this zone would continue the broader rally originating from 1.0356 and target the 1.2764 Fibonacci level. Conversely, breaking the 1.2182 minor support would suggest an extended corrective pattern from 1.2450, shifting the bias towards a downside target of 1.2014 support.

Taking a broader perspective, price movements from 1.2450 are viewed as a corrective pattern in relation to the rally from the 1.0356 medium-term low (the 2022 low). The rally from 1.0356 is expected to resume, with a break of 1.2451 targeting the 61.8% retracement of 1.4253 (2021 high) to 1.0356 at 1.2764. This scenario remains the most likely outcome as long as the 38.2% retracement of 1.0356 to 1.2450 at 1.1650 holds.