FX.co ★ GBP/USD Outlook for May 26, 2023

GBP/USD is trading in the zone of short-term and long-term bear markets while remaining above key medium-term support levels at 1.2290 (50 EMA on the weekly chart) and 1.2245 (200 EMA, 144 EMA on the daily chart). A breakthrough of short-term resistance levels at 1.2417 (200 EMA on the 1H chart) and 1.2441 (200 EMA on the 4H chart) will bring the pair back into the zone of the medium-term bullish market, signaling a resumption of long positions.

At the same time, GBP/USD is moving within an upward channel on the weekly chart, heading towards its upper boundary and the key resistance level at 1.2800 (200 EMA on the weekly chart).

A breakthrough of this level will also mean a breakthrough into the zone of the long-term bullish market.

Further growth targets include key strategic resistance levels at 1.3930 (144 EMA on the monthly chart) and 1.4360 (200 EMA on the monthly chart), below which GBP/USD remains in the zone of the global bearish market.

In an alternative scenario, a breakdown of yesterday's low at 1.2308 will be the first signal for the resumption of short positions. A breakthrough of the key support level at 1.2245 (200 EMA on the daily chart) will return GBP/USD to the zone of the long-term bearish market.

Support levels: 1.2300, 1.2290, 1.2245

Resistance levels: 1.2400, 1.2417, 1.2441, 1.2500, 1.2525, 1.2600, 1.2650, 1.2700, 1.2800