Morning Market Update – GBP/USD

The GBP/USD pair recovers mildly today but stays in corrective pattern from the 1.3108 level. Intraday bias the pair remains neutral first. We’d continue to expect a strong support from this level to contain downside and bring rally resumption. Breaking of the pair at the 1.3152 level will turn bias back to the upside for 1.3222 support-turned-resistance level.

In the bigger picture, the current development argues that the down term trend in the pair has been reversed and a key bottom was formed back to the 1.3108 level. A current rise from this level suggests some corrective move is in place and the target retracement of the 1.3222 level. In any case, the pair’s medium-term outlook will stay bullish.

The market is looking for confirmation that the move will not quickly be retraced. There has been a bit of a wobble on the pair breakout but as yet it is holding. The recent candle breakout was followed by a corrective move which has gained some momentum. However, the pair bounced today from the previous breakout support band, having posted a low seems to be complete. The longer the market holds on to this band of old resistance that has turned into new support. The pair’s momentum is strong with the oscillator rising. The next task is for the bulls to breakout above is high at the 1.3152 level and continue the bull run. The four hourly charts show an unwinding of near-term momentum to levels where the bulls have tended to support. A subsequent upside resistance is at the 1.3512 level. The bulls will remain in control above the 1.3108 level.

The GBP/USD pair tested the key support level in recent days and keeps its stability above it until now. This keeps the chances valid to continue the bullish trend and the price needs to rally upwards to breach the 1.3152 level to get strong positive motive that reinforces the expectations targeting the bullish channel’s resistance that rises to the 1.3222 level.

Therefore, we will continue to suggest the bullish trend in the upcoming sessions unless it breaks support and holds below it. As this break will push the price for a more bearish correction on the intraday basis and visit the 1.3077 level before any new attempt rises.

The pair’s expected trading range for today is between the 1.3108 support and 1.3222 resistance levels.

Expected trend for today: Bullish
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