Technical Analysis of GBP/USD for May 5, 2023

Technical Market Outlook:

The GBP/USD pair has made another new swing high at the level of 1.2633 and is starting a pull-back cycle. The intraday technical support is seen at the level of 1.2583, so please keep an eye on this level. The momentum on H4 time frame chart is positive and strong, so when the pull-back is completed, then the next target for bulls is seen at 61% Fibonacci retracement located at the level of 1.2778. The key short-term technical support is seen at 1.2343.

Weekly Pivot Points:

WR3 - 1.28474

WR2 - 1.26894

WR1 - 1.26278

Weekly Pivot - 1.25314

WS1 - 1.24698

WS2 - 1.23734

WS3 - 1.22154

Trading Outlook:

Pound continues the corrective cycle to the upside and on the Weekly time frame chart the price is about to hit the 61% Fibonacci retracement located at the level of 1.2778. When this level is hit, the high volatility is expected, so please stay focused as the bears will defend this level strongly.