GBP/USD Intraday Outlook 09-MAY-23

GBP/USD Daily Outlook and Analysis

In an analysis of intraday currency fluctuations, we see a neutral bias in the GBP/USD pair due to its recent pullback. However, the forecast maintains an optimistic outlook, conditioned by the sustainability of the 1.2438 support level. An upward momentum could be reignited if the pair successfully breaches the 1.2671 resistance level, which would then aim for the Fibonacci level at 1.2763 initially. A strong break beyond this point might lead to the 61.8% projection of the rise from 1.0355 to 1.2449, calculated from the 1.1805 level, which stands at 1.3099.

Taking a deeper look at the larger context, the ongoing rise from the 2022 medium-term low at 1.0355 is anticipated to achieve a 61.8% retracement of the swing from the 2021 high at 1.4252 to 1.0355, which corresponds to the 1.2763 level. A sustained breach of this level would provide significant evidence to support the case for a long-term bullish trend reversal. In the event of a further break of the 61.8% projection of the rise from 1.0355 to 1.2449, calculated from the 1.1805 level, we could see an upside acceleration to the 100% projection at 1.3899. This optimistic scenario remains the predominant forecast, and its viability is maintained even in the event of a significant pullback, as long as the 1.1805 support level holds.