FX.co ★ Technical analysis of GBP/USD for August 29, 2016

Overview:

• The GBP/USD pair faced strong support at the level of 1.3023 because resistance became support. So, the strong support is already seen at the level of 1.3023 and the pair is likely to try to approach it in order to test it again. The level of 1.3120 represents a weekly pivot point for that it is acting as minor resistance today. Furthermore, the GBP/USD pair is continuing to trade in a bullish trend from the last support level of 1.3023. Currently, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3023 and 1.3120. Also, it should be noticed that the double top is set at 1.3278. THe trend is still below the double top of 1.3278. Additionally, the RSI is still signaling that the trend is downward as it remains strong above the moving average (100). This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, sell orders are recommended below 1.3120 (pivot) with the first target at the level of 1.3072. If the trend is be able to break the double top at the level of 1.3072, then the market will continue dropping towards the major support at 1.3023.

Comment:

• Daily range: 1.3023 - 1.3120.
• Volatility:112,20. As a rule, the market is highly volatile if the last day had a huge volatility.
• Resistance is seen at the levels of 1.3120, 1.3190 and 1.3278.