FX.co ★ Technical Analysis of GBP/USD for October 26, 2022

Technical Market Outlook:

The GBP/USD pair has broken out from the triangle price pattern and tested the wave A high located at 1.1496. The market is ready to extend the breakout towards the projected target level located at 1.1625 or higher (61% Fibonacci projection of the wave A). The intraday technical support is seen at 1.1410 and 1.1439. The momentum is strong and positive, which supports the short-term bullish outlook for GBP. Only a sudden and strong breakout below the 30 periods moving average would change the imminent outlook to bearish.

Weekly Pivot Points:

WR3 - 1.15209

WR2 - 1.14338

WR1 - 1.13938

Weekly Pivot - 1.13467

WS1 - 1.13067

WS2 - 1.12596

WS3 - 1.11725

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).