FX.co ★ Technical Analysis of GBP/USD for October 21, 2022

Technical Market Outlook:

The GBP/USD pair has been seen moving away from the level of 1.1410 and is currently consolidating around the technical support seen at 1.1224 (intraday technical support ). The last bounce had been terminated with a Doji candlestick pattern at the H4 time frame chart, however, the bulls keep trying to move higher. Please notice there is still wave C waiting to develop to the upside as the ABC corrective cycle hasn't been completed yet, however any breakout below the level of 1.0923 will invalidate the ABC corrective cycle scenario. The momentum is negative already, so please watch the technical support level for any sign of weakness, because the down move continuation might hit the next technical support located at 1.1037.

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).