GBP/USD Intraday Outlook 18-April-23

GBP/USD Daily Outlook and Analysis

The intraday bias for GBP/USD currently holds a neutral position. With the 1.2347 support level unbroken, another rise is favored. On the upside, surpassing 1.2549 will initially target the 1.2763 Fibonacci level. A firm break at this level will aim for the 61.8% projection of the 1.0355 to 1.2449 range from 1.1805, which is situated at 1.3099. However, due to the bearish divergence observed in the 4-hour MACD, a decisive break below 1.2347 would confirm short-term topping and shift the bias back to the downside for a more significant pullback.

Looking at the bigger picture, the rise from the 2022 low of 1.0355, which serves as the medium-term bottom, is progressing towards the 61.8% retracement of the 1.4252 (2021 high) to 1.0355 range at 1.2763. A sustained break at this level would bolster the case for a long-term bullish trend reversal. Further penetration of the 61.8% projection of the 1.0355 to 1.2449 range from 1.1805, which stands at 1.3099, could trigger an acceleration of the upward movement towards the 100% projection at 1.3899. This scenario will remain the preferred case as long as the 1.1805 support level holds, even if a deep pullback occurs.