Published on Feb 23, 2023

Daily Analysis For GBP/USD 23-02-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events : -

GMT		Event	Currency
09:30	-	(United Kingdom) BoE L Mann Speech	GBP
10:45	-	(United Kingdom) BoE Cunliffe Speech	GBP
11:00	-	(United Kingdom) CBI Distributive Trades	GBP
13:30	-	(United States) GDP Price Index QoQ	USD
13:30	-	(United States) GDP Growth Rate QoQ	USD
13:30	-	(United States) Chicago Fed National Activity Index	USD
13:30	-	(United States) Initial Jobless Claims	USD
13:30	-	(United States) Jobless Claims 4-week Average	USD
13:30	-	(United States) Continuing Jobless Claims	USD
15:50	-	(United States) Fed Bostic Speech	USD
16:00	-	(United States) EIA Crude Oil Stocks Change	USD
16:00	-	(United States) EIA Gasoline Stocks Change	USD

Today's Scenario : - During early Thursday, the GBP/USD pair achieved a new intraday high, nearing 1.2060, following a period of consolidation after experiencing its largest daily loss in over a year. This recovery marks a significant rebound from the Cable pair's one-week-long upward trend, which had previously been observed. Furthermore, the bullish RSI divergence that had been hidden has now emerged, indicating a potential bullish trend.

To summarize, the GBP/USD pair has shown signs of a bullish trend reversal, with the hidden bullish RSI divergence suggesting an increase in buying pressure. Investors and traders should keep a close eye on this pair's movements in the near future.

Buy Scenario : - Early on Thursday, the GBP/USD pair reached a new intraday high near 1.2060 while consolidating the largest daily loss in over a year. Despite this, the Cable pair bounced back from a one-week-long ascending trend and showed a hidden bullish RSI divergence.

This bullish divergence is indicated by lower lows in the RSI (14) but higher lows in the GBP/USD price. This divergence favors the pair's latest rebound from the short-term key support line.

To confirm further upside, the pair's 61.8% Fibonacci retracement level of its January 2023 up-moves near 1.2075 must be validated. Following that, the 200-bar Exponential Moving Average (EMA) level around 1.2135 may pose a challenge for the GBP/USD bulls before directing them to the previous weekly high near 1.2270.

If the Cable pair stays strong beyond 1.2270, January's top near 1.2450 will come into focus. However, a downside break of the immediate support line near 1.2040 could quickly lead to the 1.2000 psychological level on the chart. Till we do not advise to buy in GBP/USD.

Sell Scenario: - In the event of a downside break of the immediate support line, which is close to 1.2040 by the press time, the GBP/USD pair could experience a rapid drop and reach the psychological magnet of 1.2000 on the chart. This scenario may occur if the bears continue to dominate the pair and push it towards lower levels.

On the other hand, if the GBP/USD bears persist, a descending support line from January 12, 2023, could come into play and put further downward pressure on the pair. This support line, which is located around 1.1900 at the latest, could be a significant level to watch for traders and investors as it may indicate a bearish trend reversal.

Therefore, it is crucial to keep an eye on the price movements of the GBP/USD pair and monitor any potential breakouts or reversals in the near future. Till then we do not advise selling GBP/USD.

Support and Resistance Level : -