GBP/USD Intraday Outlook and Analysis
The intraday outlook for GBP/USD maintains a neutral position as range-bound trading persists. With the minor support at 1.2179 remaining unbroken, the market anticipates a further rally. On the upside, surpassing 1.2344 will aim for the 1.2447/8 resistance zone. A solid break at this point will reinitiate the more extensive rally from 1.0353, targeting the 1.2761 Fibonacci level. Conversely, breaking the 1.2179 minor support might suggest that the corrective pattern from 1.2447 is extending with another declining leg, shifting the bias towards the downside for the 1.2011 support level.
Examining the larger picture, the price action from 1.2447 appears to be a corrective pattern for the rise from the medium-term low of 1.0353 (2022 low). The market expects the rally from 1.0353 to resume, and breaking 1.2448 will target the 61.8% retracement of the range from 1.4250 (2021 high) to 1.0353, which is 1.2761. As long as the 38.2% retracement of the range from 1.0353 to 1.2447 at 1.1647 holds, this scenario will remain favorable.