05.08.202107:54 Forex Analysis & Reviews: Technical Analysis of GBP/USD for August 5, 2021

Technical Market Outlook:

The GBP/USD pair has bounced from the consolidation zone located between the levels of 1.3874 - 1.3894, made a local high at the level of 1.3956 and got back to the zone again. Last time, the rally from the level of 1.3571 has ended with a Pin Bar candlestick first, and then Bearish Engulfing candlestick pattern. The local low was made at the level of 1.3874 and since then the bulls are trying to resume the rally towards the next target seen at 1.4000. Only a sustained violation of the technical support seen at the level of 1.3822 would change the short-term outlook to bearish. The market participants await the Bank of England interest rate decision that might trigger a bigger move.

Weekly Pivot Points:

WR3 - 1.4257

WR2 - 1.4114

WR1 - 1.4010

Weekly Pivot - 1.3869

WS1 - 1.3765

WS2 - 1.3628

WS3 - 1.3513

Trading Outlook:

The weekly time frame chart still shows, that the up trend is still intact and the corrective wave had terminated at the level of 1.3571. Only a sustained violation of the level of 1.3518 would trigger a bigger down move than a regular pull-back. The up trend can be continued towards the next long-term target located at the level of 1.4246 (high from 24.02.2021).