FX.co ★ May 16, 2023 : GBP/USD Intraday technical analysis and significant key-levels.

The price showed an upward trend between 1.0400 and 1.0600, which stopped further declines.

Bulls maintained the rising lows at 1.1150 and 1.1750, suggesting a likely continuation of the upward trend above 1.1750.

At 1.2340, bears initially opposed the price, but bulls regained control. However, the GBPUSD bulls failed to create a new high and instead formed a double-top pattern around the same price level.

As a consequence, a downward correction towards 1.1800 occurred, which was considered as a good opportunity to buy with an initial target of around 1.2350.

Recent fundamental analysis indicates that the GBPUSD pair has been supported by the UK's economic recovery and successful vaccination campaign, while the USD has been weakened by low interest rates and inflation worries.

Despite this positive outlook, traders should be cautious and pay attention to any news that may affect the performance of the currency pair.

If the pair continues to move up steadily above 1.2340, it could potentially reach 1.2700. However, if the current positive breakout proves to be a false one, another downward movement towards 1.1750-1.1800 could be expected.