Technical Analysis of GBP/USD for August 12, 2021

Technical Market Outlook:

The GBP/USD pair has bounced from the oversold market conditions after the new local low was made at the level of 1.3802. The Bullish Engulfing candlestick pattern was made at the end of the down move, but toe bounce was capped at the level of 1.3885, which is the nearest supply zone for bears. The momentum is neutral-to-bearish, so the bears might try to push the price back towards the recent lows. Only a sustained breakout above the upper channel line seen around 1.3910 would change the outlook to more bullish.

Weekly Pivot Points:

WR3 - 1.4009

WR2 - 1.3980

WR1 - 1.3916

Weekly Pivot - 1.3887

WS1 - 1.3821

WS2 - 1.3780

WS3 - 1.3720

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).

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The material has been provided by InstaForex Company - www.instaforex.com

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