23.08.201912:04 Forex Analysis & Reviews: Technical analysis of GBP/USD for August 23, 2019

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Overview:

The GBP/USD pair set above strong support at the level of 1.2173, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected for three times confirming uptrend veracity.

Today, the GBP/USD pair was trading above the area of 1.2173, the level of 1.2173 represents a weekly pivot point in the H1 time frame.

The Relative Strength Index (RSI) is considered overbought because it is above 30. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).

This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.

Amid the previous events, the price is still moving between the levels of 1.2173 and 1.2272.

In overall, we still prefer the bullish scenario as long as the price is above the level of 1.2173. Furthermore, if the GBP/USD pair is able to break out the top at 1.2272, the market will rise further to 1.2333.

On the other hand, the daily strong support is seen at 1.2173. in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2173, a further decline to 1.2004 can occur which would indicate a bearish market.

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