Technical analysis of GBP/USD for August 15, 2023

Overview :

The GBP/USD pair managed to exceed 1.2602 level and close the last four hours' candlestick above it, reinforcing the expectations of continuing the bullish trend for the rest of the day, reminding you that our waited target is located at 1.2800, supported by RIS and the EMA50 positivity - last bearish wave 1.2602 (major support).

In case the GBP/USD pair manages to sette above the support 1.2602 level, it will have a good chance to climb above 1.2602, although it should be noted that the current move has already pushed the GBP/USD pair into the overbought territory. Holding above 1.2602 is important to continue the expected rise, as breaking it will push the price to decline and visit 1.2602 areas before any new positive attempt.

The expected trading range for today is between 1.2602 support and 1.2867 resistance. The expected trend for today: Bullish. The GBPUSD pair rallied upwards strongly to succeed achieving our second waited target at 1.2800, noticing that the price is affected by RIS positivity to show positive trades now, and it might test 1.2827 and might extend to 1.2703 before turning back to rise again.

We expect the continuation of the main bullish trend domination in the upcoming period, supported by the EMA100 that carries the price from below, reminding you that our next target reaches 1.2910, while achieving it requires holding above 1.2602. Some technical fundamental analysis shows that The US Dollar is falling sharply across the board.

It resumed the decline after the ECB meeting and following mixed economic reports from the US. Initial Jobless Claims remain at the highest level since 2021 at 262K, against expectations of a decline. On the positive side, Retail Sales rose by 0.3% in May, while consensus pointed to a 0.1% decline. Industrial Production fell 0.2% in May, while the NY Empire State Manufacturing Index jumped to 6.6 in August, largely above expectations. US Treasury yields are sharply lower today, with the 8-year under 3.72%, despite the hawkish tone from the Federal Reserve on Wednesday. Additionally, an improvement in risk sentiment is weighing on the Dollar.

However, the price spot of 1.2849 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the double top as long as the level of 1.2849 is not breached.