- The GBPUSD Forex rate has been probing higher in a corrective recovery theme this week, with slightly better data coming through on the U.K. economy.
- However, prior bearish technical signals still leave GBPUSD vulnerable to further losses into this week.
GBPUSD day trade outlook: Negative tone
A Tuesday-Wednesday rebound above 1.2969/79 resistances, but then stalling from below 1.3010 (from 1.2991), thereby holding onto negative forces from the earlier February selloff through key 1.2904 support (for an intermediate-term bearish shift), keeping risks lower Thursday.
- We see a downside bias for 1.2932; a break below aims for 1.2894, maybe for 1.2872.
- But above 1.2991 quickly targets 1.3010; above sees risk up towards key 1.3069/70.
GBPUSD intermediate-term outlook
We see an intermediate-term bear trend with the break below 1.2904.
Downside risks: We see downside risks for 1.2768, 1.2516 and maybe 1.2197.
What changes this? Above 1.3070 sets an intermediate-term neutral tone and only above 1.3209 an intermediate-term bull trend.
4 Hour GBPUSD Chart