GBP/USD's slight upwards momentum appears to be fading away. Following July's multi-year low of 1.1759, the pair had entered a small correction phase, leading to a modest recovery towards 1.2200. At the time of writing, the pair is trading around 1.2174. The short-term resistance levels are near 1.2241 and 1.2278. The short-term support levels are near 1.2174 and 1.2144.
The current intraday price pattern suggests a strong resistance near the current market levels, and the pair is likely to head towards a lower weekly closing.
GBP/USD Daily Technical Snapshot – Short Term
The Bollinger Bands and Stochastic are currently neutral. The Average True Range (ATR) shows low volatility while the Relative Strength Index (RSI) is also neutral. GBP/USD is currently trading above the 100-day moving average while keeping below the 20 and 50-period moving averages. Finally, the MACD is above the zero line.
| Stochastic | Bollinger Bands | ATR | MACD | RSI | |
|---|---|---|---|---|---|
| GBP/USD | Neutral (68) | Neutral (1.2175) | 0.0112 (Volatility down) | Above Zero | 56 (Neutral) |
GBP/USD Support and Resistance Levels – Short Term
| Support 1 | Support 2 | Support 3 | Resistance 1 | Resistance 2 | Resistance 3 | |
|---|---|---|---|---|---|---|
| GBP/USD | 1.2174 | 1.2144 | 1.2107 | 1.2241 | 1.2278 | 1.2308 |
GBP/USD Trade Signal – 12-August
Based on the current intraday price pattern and nearby resistance areas, the pair is once again likely to take a dip which makes it ideal for selling entries for small profits using the following levels
Direction: Sell
Entry: 1.2335
Stop-Loss: 1.2447
Take Profit: 1.2167
GBP/USD Upcoming Levels To Watch
A weekly closing above 1.2200 will likely help the bull target the 1.2300 and 1.2364 resistance levels next week. Failing to close the week above 1.2200 will indicate a further bearish momentum, and the possibility of a breach below 1.2100 will be high.