Technical Analysis of GBP/USD for July 21, 2023

Technical Market Outlook:

The GBP/USD pair has been seen moving away from the key long term technical resistance on the Weekly time frame chart located at 1.3163. The bears keep moving lower as they approaching the 61% Fibonacci retracement level located at 1.2802. The old swing high will now act as an key short-term technical support located at the level of 1.2848. The momentum on the H4 time frame chart hit the extremely oversold conditions, but Daily and Weekly time frame chart are still oversold, so a pull-back towards the support is on the table. Only a sustained breakout below the moving average dynamic support around 1.2693 would change the outlook to more negative.

Weekly Pivot Points:

WR3 - 1.31186

WR2 - 1.31040

WR1 - 1.30976

Weekly Pivot - 1.30894

WS1 - 1.30830

WS2 - 1.30748

WS3 - 1.30602

Trading Outlook:

The bulls keep continuing the up trend towards the key technical resistance located at the level of 1.3163 and a breakout above this level is needed to extend the up trend towards the last Weekly swing high seen at 1.4248. Only a sustained breakout blow the technical support seen at the level of 1.1775 would change the outlook to bearish.