FX.co ★ Technical Analysis of GBP/USD for September 7, 2022

Technical Market Outlook:

The GBP/USD pair had managed to bounce 1.30% towards the nearest horizontal technical resistance seen at the level of 1.1622. However, on the very next day, the bears pushed the market back towards the swing low and all of the recent gains were erased. The momentum is negative again on the H4 time frame chart, so the larger time frame trend (daily and weekly) remains down until further notice. Please watch closely the market reaction for the level of 1.1410 breakout or bounce.

Weekly Pivot Points:

WR3 - 1.15513

WR2 - 1.15077

WR1 - 1.14791

Weekly Pivot - 1.14641

WS1 - 1.14355

WS2 - 1.14205

WS3 - 1.13769

Trading Outlook:

The bearish domination is clear and there is no indication of down trend termination or reversal on the GBP/USD market. 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, so the downside move accelerated. The next long term target for bears is seen at the level of 1.1410 (2020 low). Please remember: trend is your friend.