FX.co ★ Technical Analysis of GBP/USD for August 16, 2023

Technical Market Outlook:

The bears on the GBP/USD pair managed to make another low at the level of 1.2615 as well as the Pin Bar candle on H4 time frame chart. In a case of a breakout lower, the traders should pay attention to the intraday technical support seen at 1.2620 as it is up next for the test. However, the Bullish Engulfing candlestick pattern was made at this level as well, so the bull are still defending the lows. The next target for bears is seen at the level of 1.2590, which is the key short-term technical support level. The recent momentum breakout into the positive territory on the H4 time frame chart supports the short-term bearish outlook for GBP. Only a strong reversal and a breakout above the local supply zone located between the levels of 1.2762 - 1.2797 would change the short-term bearish outlook. Reversal confirmation comes with the level of 1.2803 breakout (100 MA).

Weekly Pivot Points:

WR3 - 1.27746

WR2 - 1.27333

WR1 - 1.27183

Weekly Pivot - 1.2692

WS1 - 1.26770

WS2 - 1.26507

WS3 - 1.26094

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.