GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2967; (P) 1.2988; (R1) 1.3025; Further updates are likely.

The GBP/USD currency pair has shown a strong rally since reaching a low of 1.2099. This upward movement is expected to continue as traders anticipate a retest of the previous high at 1.3433. However, if the price breaks below the support level at 1.2910, it may indicate that the recent rally is losing momentum. This could suggest a short-term top, especially if there is visible bearish divergence in the 4-hour MACD indicator. Such a development would shift the intraday bias toward a deeper pullback.

In the bigger picture, the overall uptrend that began from the low of 1.3051 in 2022 does not appear to have reached its end. After the current correction from the 1.3433 high completes, a continuation of the upward trend is expected. The next significant target for this movement would be the key resistance level at 1.4248. This scenario will likely remain valid as long as the support at 1.2099 holds.

GBP, USD, rally