Pound stays firm, looking to bounce – GBPUSD forecast

Intermediate
  • A shift to a “risk off” theme over the past 24 hours with stock markets dipping, likely reacting to correction activity rather than a more negative outlook.
  • This has also seen a rebound and slight strengthening of the US Dollar against most currencies,
  • Therefore, GBPUSD has dipped, but also tried to rebound, having has a strong advance over the past week.
  • We see the GBPUSD risk still higher for today and into the second half of April.

GBPUSD day trade outlook: Recovery theme

A Wednesday selloff through the early April up trend line, just below 1.2449/40 supports, but to then bounce from 1.2437 to retain upside forces from Tuesday’s rally through a key 1.2624 level (to set an intermediate-term bull trend), to keep risks higher into Thursday.

  • We see an upside bias for 1.2526 and 1.2574; a break above aims for 1.2647, 1.2693 and maybe towards 1.2725.
  • But below 1.2460 quickly targets 1.2437, which we would look to try to hold. Through here aims for 1.2399.

GBPUSD intermediate-term outlook

The April rally above 1.2624 set an intermediate-term bull trend.

  • Upside risks: We see an intermediate-term bull trend for 1.3200 and 1.3515.
  • What changes this? Below 1.2287 shift the intermediate-term to neutral and below 1.2163 to a bear trend.

4 Hour GBPUSD Chart

gbpusd chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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