FX.co ★ Technical analysis of GBP/USD for August 31, 2022

The GBP/USD pair is down -3.75% to 1.1548 in the last 48 hours. The GBP/USD pair dropped below the 1.1713 level for the first time since two years. The price of 1.1548 is coincided with the major support in the hourly time frame.

Right now, the GBP/USD pair stood at 1.1618, after touching a high of $21k earlier in the day. But the BTC has rebounded from the price of 1.1550 to close below the price of 1.1598 at the same time frame.

Please, note that the prices of 1.1696 and 1.1713 coincide with the Fibonacci expansion of 23.6% and 38.2% respectively.

The GBP/USD pair has been in a volatile trading range for almost a week now, bouncing between 1.1696 and 1.1713.

Resistance of the GBP/USD pair is seen at the levels of 1.1696 and 1.1713.

The GBP/USD pair is trading below its resistance for a while. It is likely to trade in a lower range as long as it remains below resistance.

Furthermore, it should bear in mind that resistance has set at 1.1696. The GBP/USD pair pair has made an important significant movement from yesterday.

For that my foresee will focus on bearish market in my technical outlook.

The bias remains bearish in the nearest term testing 1.1550 or lower. If the trend can break the first target at 1.1550, the market will call for a strong bearish trend towards the next target at 1.1500 .

However, stop loss has always been in consideration. Thus it will be useful to set it above the last double top at the level of 1.1713 (notice that the major resistance today has set at 1.1713).

Downtrend scenario :

On the downside, the 1.1696 level represents support. The next major support is located near the 1.1598, which the price may drift below towards the 1.1500 support region.

Forecast:

The volatility is very high for that the GBP/USD pair is still moving between 1.1696 and 1.1500 in coming hours. Consequently, the market is likely to show signs of a bearish trend again. As a result, it is gainful to sell below this price of 1.1696 with targets at 1.1550 and 1.1500. On the other hand, the bullish trend is still expected for the upcoming days as long as the price is above 1.1713. The Cable trading is subject to high market risk. My analysis will make the best efforts to choose high-quality of my forecast, but will not be responsible for your trading losses. Please trade with caution.