FX.co ★ Technical Analysis of GBP/USD for August 21, 2020

Overview:

The GBP/USD pair has faced strong resistances at the levels of 1.3266 because it is formed a double top in the H1 time frame.

So, the strong resistance has already set at the level of 1.3266 and the pair is likely to try to approach it in order to test it again.

However, if the pair fails to pass through the level of 1.3266, the market will indicate a bearish opportunity below the new strong resistance level of 1.3266.

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).

Thus, the market is indicating a bearish opportunity below 1.3266 for that it will be good to sell at 1.3266 with the first target set of 1.3166.

The level of 1.3166 is represented a trigger line in order to continue reversal (downtrend).

It will also call for a downtrend in order to continue towards 1.3067. The daily strong support is seen at 1.3067.

On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.3310.