FX.co ★ Technical Analysis of GBP/USD for July 26, 2022

Technical Market Outlook:

The GBP/USD pair is still trying hard to rally towards the level of 1.2161. The bulls had violated the upper consolidation zone level located at 1.2060 as the last local high was made at the level of 1.2089. Nevertheless, the last H4 time frame candle looks like a Pin Bar, so the pull back might be underway. The supply zone located between the levels of 1.2161 - 1.2187 is still the main short-term obstacle for bulls that needs to be broken if the rally is expected to be continued. The weak and negative momentum on the daily time frame chart still supports the bearish outlook and the next target for bears is located at the level of 1.1410.

Weekly Pivot Points:

WR3 - 1.2057

WR2 - 1.2017

WR1 - 1.1996

Weekly Pivot - 1.1978

WS1 - 1.1956

WS2 - 1.1938

WS3 - 1.1892

Trading Outlook:

The Cable is way below 100 and 200 DMA , so the bearish domination is clear and there is no indication of down trend termination or reversal. The bulls are now trying to start the corrective cycle after a big Bullish Engulfing candlestick pattern was made on the weekly time frame chart (last week), however there is no visible progress here yet. The next long term target for bears is seen at the level of 1.1410. Please remember: trend is your friend.