FX.co ★ Technical Analysis of GBP/USD for August 23, 2022

Technical Market Outlook:

The GBP/USD pair had broken below the trend line support around the level of 1.1916 and made a new swing low at the level of 1.1743 despite the extremely oversold market conditions on the H4 time frame. A bounce should be expected towards the intraday technical resistance seen at 1.1760. The nearest technical resistance is seen at the level of 1.1890. The larger time frame trend (daily and weekly) remains down until further notice.

Weekly Pivot Points:

WR3 - 1.18835

WR2 - 1.18488

WR1 - 1.18267

Weekly Pivot - 1.18141

WS1 - 1.17920

WS2 - 1.17794

WS3 - 1.17447

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 has failed big time to continue the corrective cycle after a big Bearish Engulfing candlestick pattern was made on the weekly time frame chart last week. The next long term target for bears is seen at the level of 1.1410. Please remember: trend is your friend.