FX.co ★ Technical analysis of GBP/USD for August 31, 2020

The GBP/USD pair has faced strong support at the level of 1.3248 because resistance became support.

So, the strong resistance has been already faced at the level of 1.3248 and the pair is likely to try to approach it in order to test it again.

The level of 1.3248 represents a weekly pivot point for that it is acting as minor support this week.

Furthermore, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.3248. Currently, the price is in a bullish channel.

According to the previous events, we expect the GBP/USD pair to move between 1.3248 and 1.3368.

Also, it should be noticed that the double top is set at 1.3368. Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100).

This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.3248 with the first target at the level of 1.3368.

If the trend is be able to break the double top at the level of 1.3248 , then the 1.3248 market will continue rising towards the weekly resistance 2 at 1.3441.

However, it would also be sage to consider where to place a stop loss; this should be set below the first support of 1.3211.