The GBP/USD pair is still trading in a range and the intraday bias remains neutral at the moment. If the resistance at 1.2863 holds, there is a likelihood of further decline. A break below 1.2706 could target the support level at 1.2612 initially. A clear breakthrough of this support level would confirm the completion of the rise from 1.2298. On the other hand, a break above 1.2863 could shift the bias back to the upside with a retest of the resistance level at 1.3043.
Looking at the bigger picture, it seems that the corrective pattern from 1.3141 is continuing with the decline from 1.3043 as another downward movement. If the support at 1.2612 is broken, it would strengthen this scenario. However, any downside movement is expected to be limited by the support zone of 1.2036/2298, even in the case of a significant decline. The overall outlook still favors a resumption of the rise from the 2022 low of 1.0351 at a later time.
It is important for traders to closely monitor the key support and resistance levels mentioned above to determine the future direction of the GBP/USD pair. Economic events and data releases could also impact the currency pair’s movement, so staying informed about the latest news and developments is crucial for making well-informed trading decisions. Keep an eye on any updates regarding Brexit negotiations, economic indicators, and central bank announcements as they could all play a role in shaping the GBP/USD exchange rate in the coming days and weeks.
