FX.co ★ GBP/USD Technical Analysis and Trading Tips for September 06, 2022

The current strengthening of the pound and the growth of the GBP/USD pair can, perhaps, be attributed to an important political event. On Monday, the United Kingdom finally elected its new Prime Minister, Liz Truss

As of writing, GBP/USD is trading near the 1.1600 mark, through which there is a short-term resistance level (144 EMA on the 1-hour chart).

The current growth of GBP/USD provides opportunities for entering new short positions, both on the market and in case of growth to resistance levels of 1.1638 (200 EMA on the 1-hour chart), 1.1650.

In general, the downward dynamics of the GBP/USD remains, despite the current upward correction.

In an alternative scenario, a breakdown of the resistance levels of 1.1938, 1.1650 may provoke further growth in GBP/USD up to the resistance levels of 1.1882 (200 EMA on the 4-hour chart), 1.1960 (50 EMA on the daily chart).

Further growth looks unlikely so far, while the US dollar is at the highs of the last 20 years in anticipation of the next Fed meeting on September 21. Most economists expect an interest rate hike of 50.0 basis points. Tougher decisions of the Fed leaders are also not ruled out.

Thus, for now, short positions remain preferable. Below the key resistance levels 1.2420 (144 EMA on the daily chart), 1.2610 (200 EMA on the daily chart) GBP/USD remains in the zone of a long-term bearish market.

Support levels: 1.1500, 1.1410

Resistance levels: 1.1638, 1.1650, 1.1700, 1.1760, 1.1882, 1.1960, 1.2000, 1.2270, 1.2420, 1.2610

Trading Tips

Sell by market, Sell Limit 1.1635, 1.1650. Stop Loss 1.1690. Take Profit 1.1500, 1.1410, 1.1300