GBPUSD Technical Analysis, August 19, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

GBPUSD:


Technical Outlook:

GBPUSD might be pushing higher towards 1.3300 handle before reversing lower again. The currency seems to have completed its minimum requirements for a completion of Wave C from 1.2250 levels. Bears might remain inclined to be back in control.

GBPUSD bulls have also managed to take out resistance around 1.3200 handle. We have been referring to this since last few weeks now. A meaningful corrective drop should be due towards 1.2100 levels going forward. We shall wait for a bearish turn from here.

GBPUSD had dropped through 1.1414 lows in March 2020. After hitting a multi-year low, the currency had turned higher and remained in control of bulls. A series of higher highs and higher lows were carved and the structure looks to be a 5-3-5 until now.

If an impulse wave is underway, GBPUSD may continue its rally towards 1.3500 and higher. Alternately, the above rally could be retraced through fibonacci 0.618 levels around 1.2100 mark. It would be difficult to predict that pieces would stay above 1.1414 levels.

Either way, a meaningful corrective drop should be due from current levels. Watch out for a potential top and reversal around 1.3250/1.3300 levels, going further. Also note that next in-line resistance is seen above 1.3500 mark.

Immediate support is seen towards 1.3000 levels and a break lower would certainly confirm that GBPUSD has carved a meaningful top around 1.3250/1.3300 handle.


Trading Strategy:

Prepare to sell between 1.3250/1.3300 mark.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Share this post    

Share on facebook
Share on twitter
Share on linkedin
Share on email
T&C's Apply