GBPUSD Price Analysis – August 20
In case the pair succeeds to break up the resistance level of $1.31, then, $1.33 and $1.34 will be the next targeted resistance level. The ranging movement may continue in case the resistance level of $1.31 holds. There is still room for the bulls to go higher
Supply levels: $1.33, $1.34, $1.35
Demand levels: $1.31, $1.28, $1.26
GBPUSD Long-term Trend: Bullish
GBPUSD eventually breaks the strong significant resistance level at $1.31 on Tuesday, August 18. The currency pair is pulling back on Wednesday after closing above the $1.31 price level. Not only that, but the pair also closed below $1.31 yesterday, supported by dynamic support level 9 periods EMA. Today the bulls resume back to the market; this is confirmed with the formation of a daily bullish candle that is pushing the price towards the supply level of $1.33.
Having broken up the resistance level at $1.31 second time indicates that bulls still have the potential of reaching the high it has not reached five months ago. GBPUSD may reach a high of $1.34 and $1.35 provided the resistance level at $1.33 does not hold. Should the just mentioned level hold; the price may consolidate before the decision is taken on the next movement. However, looking downside, the support level is found at $1.31, $1.28, and $1.26.
GBPUSD Medium-term Trend: Bullish
GBPUSD is bullish in the 4-hour chart. Last week bullish momentum was interrupted when the price is increasing towards the supply level at $1.33. There was a price retracement below the $1.31 level. A short period of consolidation was carried out before the second bullish breakout today.
Further increase in GBPUSD price is envisaged as the RSI indicator period 14 is sharply pointing upside above 50 levels which indicates strong bullish signal. A swing trade Buy Stop order may be opened at $1.3257, take profit at $1.3467, and stop-loss at $1.3058.