FX.co ★ Technical Analysis of GBP/USD for October 31, 2022

Technical Market Outlook:

The GBP/USD pair has rebounded from the level of 1.1496 and is consolidating around the projected target level at 1.1625 (61% Fibonacci extension of the wave A). The market is ready to extend the breakout towards the projected target level located at 1.1717 (supply zone) or higher. The intraday technical support is seen at 1.1496 and 1.1544. 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 seen around 1.1206 would change the imminent outlook to bearish.

Weekly Pivot Points:

WR3 - 1.16573

WR2 - 1.16258

WR1 - 1.16072

Weekly Pivot - 1.15943

WS1 - 1.15757

WS2 - 1.15628

WS3 - 1.15313

Trading Outlook:

Despite the recent upward ABC correction towards the level of 1.1625, 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).