FX.co ★ Technical analysis of GBP/USD for August 08, 2022

Technical analysis of GBP/USD for August 08, 2022

Technical analysis of GBP/USD for August 08, 2022

Overview :

The GBP/USD pair was trading lower and closed the day in the balck zone near the price of 1.2113. Today it was trading in a narrow range of 1.2113, staying close to European's closing price.

On the hourly chart, the GBP/USD pair is again trading below the MA (100) H1 moving average line (1.2074). The situation is similar on the one-hour chart.

On the downside, break of 1.2074 minor support will argue that larger down trend is ready to resume. Intraday bias will be back to the downside for retesting 1.2002 low first.

For now, outlook will stay bearish as long as 1.2113 support turned resistance holds, even in case of another rise.

An acceleration in the bearish trend on the GBP/USD pair, which is a positive signal for sellers. As long as the price remains below the price of 1.2113 a sale could be considered. The first bearish objective is located at 1.2002.

The bearish momentum would be revived by a break in this support. Sellers would then use the next support located at 1.2002 as an objective. Crossing it would then enable sellers to target 1.1900.

Based on the foregoing, it is probably worth sticking to the south direction in trading, and while the GBP/USD pair remains below MA 100 H1, it may be necessary to look for entry points to sell for the formation of a correction.

If the price were to return above 1.1900, it would probably only trigger a small rebound in the short term to give a better base for restarting. Trading this rebound may be risky.

However, the price spot of 1.1900 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the second support as long as the level of 1.1900 is not breached.

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