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03.08.202208:55 Forex Analysis & Reviews: Technical Analysis of GBP/USD for August 2, 2022

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Technical Market Outlook:

The GBP/USD pair had made a new local high at the level of 1.2292, so it was up 4.5% from the last month low located at 1.1759. The bounce has been terminated with a Bearish Engulfing candlestick pattern and currently the market is in a pull-back mode. As long as the market trades inside the ascending channel, the bulls are ready move away from the broken trend line and hit the next target seen at the level of 1.2388. The momentum is weak and negative during the pull-back, so please keep an eye on the technical support for a potential reversal and up move continuation.

Weekly Pivot Points:

WR3 - 1.2252

WR2 - 1.2216

WR1 - 1.2199

Weekly Pivot - 1.2181

WS1 - 1.2164

WS2 - 1.2145

WS3 - 1.2109

Trading Outlook:

The Cable is way below 100 and 200 DMA , so the bearish domination is clear and there is no indication of down trend termination or reversal. The bulls are now trying to start the corrective cycle after a big Bullish Engulfing candlestick pattern was made on the weekly time frame chart, however there is no visible progress here yet. The next long term target for bears is seen at the level of 1.1410. Please remember: trend is your friend.

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