FX.co ★ Technical Analysis of GBP/USD for October 18, 2022

Technical Market Outlook:

The GBP/USD pair has been seen moving higher towards the swing high located at 1.1496. If the bulls break through this level, then the overall correction will be way over 11%, so even a bigger move to the upside is possible. The intraday technical support is seen at the level of 1.1382 and 1.1157. Please notice there is still wave C waiting to develop to the upside as the ABC corrective cycle hasn't been completed yet. The momentum is strong and positive, which support the short-term bullish outlook for Cable.

Weekly Pivot Points:

WR3 - 1.14475

WR2 - 1.13577

WR1 - 1.13206

Weekly Pivot - 1.12679

WS1 - 1.12308

WS2 - 1.11781

WS3 - 1.10883

Trading Outlook:

The bears are still in charge of Cable and the next long-term target for them is the parity level. The level of 1.0351 has not been tested since 1985, so the down trend is strong, however, the market is extremely oversold on longer time frames already. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).