29.07.202211:06 Forex Analysis & Reviews: Technical Analysis of GBP/USD for July 29, 2022

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical Market Outlook:

The GBP/USD pair had broken above the short-term technical resistance and made a new local high at the level of 1.2244 (at the time of writing the analysis). The supply zone located between the levels of 1.2161 - 1.2187 which was the main short-term obstacle for bulls was broken then. The momentum is strong and positive, however, the market is trading in the extremely overbought conditions on the H4 time frame chart, so a pull-back towards the trend line for a test is welcome.

Weekly Pivot Points:

WR3 - 1.2057

WR2 - 1.2017

WR1 - 1.1996

Weekly Pivot - 1.1978

WS1 - 1.1956

WS2 - 1.1938

WS3 - 1.1892

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 (last week), 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.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.