FX.co ★ Technical Analysis of GBP/USD for July 29, 2021

Technical Market Outlook:

The GBP/USD pair is approaching the key short-term supply zone located between the levels of 1.3965 - 1.4000. The technical support is seen at the level of 1.3832 and 1.3908. Any violation of the level of 1.3908 will result in a wave down towards the local technical support seen at 1.3832. The momentum remains strong and positive, so please keep an eye on the macroeconomic events that might trigger the breakout above 1.4000 in the near future despite the overbought market conditions on H4 time frame chart.

Weekly Pivot Points:

WR3 - 1.4060

WR2 - 1.3923

WR1 - 1.3845

Weekly Pivot - 1.3712

WS1 - 1.3638

WS2 - 1.3495

WS3 - 1.3415

Trading Recommendations:

The weekly time frame chart still shows, that the up trend is still intact, however, the bears are very close to start a genuine correction. A sustained violation of the level of 1.3518 would trigger a bigger down move than a regular pull-back. When the corrective cycle is terminated, the up trend can be continued towards the next long-term target located at the level of 1.4222 (high from 24.02.2021).