FX.co ★ Hot Forecast for GBP/USD for16 August

GBP/USD has slipped toward 1.3850, losing some ground as the dollar strengthened amid fears about global growth. At the same time, the pound sterling is under pressure as the UK COVID-19 cases remain elevated.

The pound/dollar pair has been setting lower lows and lower highs, as the four-hour chart demonstrates. Another bearish sign is the pair's failure to break above the bearish channel. On the other hand, GBP/USD is trading above the 1.3800 round figure and benefits from upside momentum.

Resistance is at the daily high of 1.3873. It is followed by 1.3885, 1.3960, and 1.3980. These levels capped the cable on its way down in August.

Support is at 1.3835, the daily low. Further down, last week's trough of 1.3785 is the next level to watch. The lower targets are 1.3765 and 1.3725.