FX.co ★ Technical Analysis of GBP/USD for April 20, 2023

Technical Market Outlook:

The GBP/USD pair has made a new swing high seen at 1.2545 and is currently developing the corrective cycle. This cycle might be in form of the ABC pattern, where wave B might be a Rising Wedge or a Triangle pattern. The intraday technical support is seen at the level of 1.2343 and the intraday technical resistance is seen at 1.2473. The momentum on H4 time frame chart is weak and negative, so the corrective cycle might be continued lower when the potential Wedge pattern is done. When the overall corrective cycle is completed, 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 1.2269.

Weekly Pivot Points:

WR3 - 1.24659

WR2 - 1.24340

WR1 - 1.24215

Weekly Pivot - 1.24021

WS1 - 1.23896

WS2 - 1.23702

WS3 - 1.23383

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.