FX.co ★ Technical Analysis of GBP/USD for August 16, 2022

Technical Market Outlook:

Despite the extremely oversold market conditions on the H4 time frame chart, the Cable bears are currently pushing the market towards the key short-term technical support seen at 1.2003. Any violation of this level will likely result in another down wave towards the level of 1.1933 and below. The momentum is weak and negative already at the H4 time frame chart, so the bearish dominance is obvious. Please keep an eye on the trend line breakout/bounce (thick orange line on the chart) as the price action around the line will give us more clues regarding the down move strength. The larger time frame trend (daily and weekly) remains down until further notice.

Weekly Pivot Points:

WR3 - 1.2206

WR2 - 1.2156

WR1 - 1.2141

Weekly Pivot - 1.2123

WS1 - 1.2099

WS2 - 1.2082

WS3 - 1.2040

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.