FX.co ★ Technical analysis of GBP/USD for August 29, 2019

Overview:

The level of 1.1108 represents a daily pivot point for that it is acting as major resistance/support this week. The major level sets at the price of 1.1108.

The EUR/USD pair faced strong resistance at the level of 1.1108 because support became support.

So, the major resistance is placed at 1.1108. This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.

The trend is still showing weakness below the moving average (100).

The market is indicating a bearish opportunity below 1.1108. Thus, it will be good to sell at 1.1108 with the first target of 1.1051 so as to test the double bottom.

It will also call for a downtrend in order to continue towards 1.1026. The daily strong support is seen at 1.1026.

The stop loss should be located above the level of 1.1140 (resistance 2).