FX.co ★ Technical analysis of GBP/USD for August 01, 2022

Technical analysis of GBP/USD for August 01, 2022

Technical analysis of GBP/USD for August 01, 2022

Overview :

The bullish trend is currently very strong on the GBP/USD pair. As long as the price remains above the support at 1.2138, you could try to benefit from the prosperity.

The GBP/USD pair has faced strong support at the level of 1.2138 because resistance became support. So, the strong resistance has been already faced at the level of 1.2138 and the pair is likely to try to approach it in order to test it again.

The first bullish objective is located at 1.2292. The bullish momentum would be boosted by a break in this resistance. Be careful, given the powerful bullish rally underway, overflow could lead to a possible correction in the short term.

The level of 1.2138 represents a weekly pivot point for that it is acting as minor support this week. Furthermore, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.2138. Currently, the price is in a bullish channel.

If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating reversal of the trend.

According to the previous events, we expect the GBP/USD pair to move between 1.2138 and 1.2340. Also, it should be noticed that the double top is set at 1.2292.

Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.

The market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.2203 with the first target at the level of 1.2340. If the trend is be able to break the double top at the level of 1.2340, then the market will continue rising towards the weekly resistance 1 at 1.2400.

On the other hand, if the GBP/USD pair fails to break through the resistance level of 1.2300 this week, the market will decline further to 1.2203.

The pair is expected to drop lower towards at least 1.2138 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as major support today.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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