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Technical analysis of GBP/USD for July 20, 2022

Relevance up to 15:00 2022-07-22 UTC–4

Overview :

A positive close today would be the longest winning run for the GBP/USD pair since the beginning of July, 2022. The 14-day RSI, after rebounding from extreme oversold levels, is still trading below the 30 mark, meaning the bulls are not yet in full control. The RSI instead produced the bullish signal, with the RSI line crossing from below to above the signal line. Therefore, there is a possibility that the GBP/USD pair will move upside and the structure of a raise does not look corrective. The trend is still above the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the upside. Intraday bias in the GBP/USD pair remains on the upside at this point. Rebound from 1.1935 short term bottom is in progress for 1.1935 resistance turned support. Break will target channel resistance at te price of 1.1981.

Amid the previous events, the price is still moving between the levels of 1.1935 and 1.2044. If the GBP/USD pair fails to break through the support level of 1.1935, the market will climb further to 1.1981 as the first target.

The price is likely to form the first resistance at the level of 1.1981. Today, the major support is seen at 0.9887. Accordingly, the GBP/USD pair is showing signs of strength following a breakout of a high at 1.191 .

So, buy above the level of 1.1981 with the second target at 1.2044 in order to test the daily resistance 2 and move further to 1.2100.

Also, the level of 1.2100 is a good place to take profit because it will form a new double top. Amid the previous events, the pair is still in an uptrend; for that we expect theGBP/USD pair to scaling from 1.2044 to 1.2100 in coming two days.

On the other hand, if the pair closes below the minor support (1.1935), the price will fall into the bearish market in order to go further towards the strong support at 1.1868.

Comment :

Also, the double bottom is seen at the level of 1.1868. If the trend is buoyant, then the currency pair strength will be defined as following: GBP is in an uptrend and USD is in a downtrend.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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