FX.co ★ Technical Analysis of GBP/USD for July 28, 2023

Technical Market Outlook:

The GBP/USD pair has reversed sharply from the local high made at the level of 1.2994 and is currently trading below the technical support seen at the level of 1.2797. Moreover, the bears managed to break below the 50 and 100 MA, so now they are in control of the market and their target is seen at the level of 1.2590 (swing low). The weak and negative market conditions on the H4 time frame chart support the bearish outlook for GBP. Only a strong reversal and a breakout above the supply zone (1.2979-12846) would change the short-term bearish outlook.

Weekly Pivot Points:

WR3 - 1.29941

WR2 - 1.29173

WR1 - 1.28745

Weekly Pivot - 1.28405

WS1 - 1.27977

WS2 - 1.27637

WS3 - 1.26869

Trading Outlook:

The bulls keep continuing the up trend towards the key technical resistance located at the level of 1.3163 and a breakout above this level is needed to extend the up trend towards the last Weekly swing high seen at 1.4248. Only a sustained breakout blow the technical support seen at the level of 1.1775 would change the outlook to bearish. The weak and negative market conditions on the H4 time frame chart support the bearish outlook for GBP. Only a strong reversal and a breakout above the supply zone (1.2979-12846) would change the short-term bearish outlook.