FX.co ★ Technical Analysis of GBP/USD for August 1, 2022

Technical Market Outlook:

The GBP/USD pair had broken above the short-term technical resistance and made a new local high at the level of 1.2244. The bulls are ready move away from the broken trend line and hit the next target seen at the level of 1.2388. The momentum is strong and positive, however, the market is trading in the extremely overbought conditions on the H4 time frame chart, so a shallow pull-back towards the trend line for a test is welcome.

Weekly Pivot Points:

WR3 - 1.2252

WR2 - 1.2216

WR1 - 1.2199

Weekly Pivot - 1.2181

WS1 - 1.2164

WS2 - 1.2145

WS3 - 1.2109

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, 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.