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Trend Needle Still Points South

GBPUSD TECHS
  • RES 4: 1.2217 High Aug 12
  • RES 3: 1.2113 50-day EMA
  • RES 2: 1.1996/2004/1.2016 20-day EMA / Low Aug 5
  • RES 1: 1.1878/1938 High Aug 23 / 19
  • PRICE: 1.1803 @ 16:41 BST Aug 25
  • SUP 1: 1.1718 Low Aug 23
  • SUP 2: 1.1673 1.00 proj of the May 27 - Jun 14 - 16 price swing
  • SUP 3: 1.1640 Low Mar 25 2020
  • SUP 4: 1.1503 Low Mar 24 2020

GBPUSD is consolidating but is trading closer to recent lows and remains vulnerable. Recent weakness that resulted in the break of support at 1.1760, the Jul 14 low and bear trigger, reinforces bearish conditions and confirmed a resumption of the downtrend. This paves the way for a move towards 1.1673, a Fibonacci projection. On the upside, firm short-term resistance is seen at 1.2004, the Aug 5 low.

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