GBPUSD Daily Analysis – June 7, 2023

The GBPUSD currency pair remains entrenched in a downtrend that started from the peak at 1.2679. The recent pullback from the 1.2544 level suggests a resumption of the downward movement, as sellers exert their control over the market.

Traders should anticipate a further decline in the coming days, with the next target being the key support level at 1.2307. A decisive breakdown below this level could potentially open the doors for a move towards the 1.2200 area, where additional support may come into play.

On the upside, near-term resistance is seen around 1.2480. A break above this level could trigger a temporary upside move, potentially testing the 1.2544 resistance level. A decisive break above 1.2544 would indicate that the previous downside move from 1.2679 has completed at 1.2307 already. In such a scenario, the next target for the bulls would be the previous high at 1.2679.

In summary, GBPUSD remains in a downtrend, with the recent pullback indicating a continuation of the downward movement. Traders should watch for a potential decline towards the 1.2307 support level. A break above 1.2544 resistance would suggest a completion of the downside move, opening the possibility of a further upside move. Technical analysis tools, monitoring of fundamental factors, and prudent risk management are important considerations for trading GBPUSD.