GBPUSD Registers Fresh 4 Months High at 1.3170 Level, Continues to Perform Despite UK Lockdown

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Azeez Mustapha

Updated: 13 October 2022

GBPUSD Price Analysis – August 2

GBPUSD ended the prior session at around 1.3170 level, which was the highest in four months. The weakness of the greenback is driving pounds higher while in England the currency is shrugging off restrictions on 4.3 million people. The GBP has been heavily overbought against the USD implying vigilance to avoid pursuing the pound higher shortly.

Key Levels
Resistance Levels: 1.3514, 1.3303, 1.3200
Support Levels: 1.3050, 1.2812 1.2647
GBPUSD Long term Trend: Bullish
Last week’s GBPUSD rally increased further to a level of 1.3170. As a new high is in effect, this week’s initial bias is first neutral. On the upside, the 1.3170 level breach may restart the increase from 1.1409 to 1.2647 levels at 1.3303 levels from 1.2075.

On the contrary, the bias to the downside for broader downshift may switch beneath the 1.3050 minor support level. But the downside may bring another rally which should be contained by 1.2812 resistance turned support level. That being said, a decisive split of 1.3514 level might at least indicate bottoming in the medium term and switch out a bullish viewpoint for 1.4376 resistance initially.
GBPUSD Short term Trend: Bullish
During the prior session, GBPUSD significantly advanced to a 4-month high of 1.3170 level, recording six green candles in a row in the 4-hour chart while dropping back around near-term support at 1.3050 level thus exiting at 1.3077 level.

The short-term moving averages 5 and 13 are beyond its 1.3050 level short-term support but the RSI is correcting from the overbought territory, suggesting a potential downside retracement. If it does not hold onto its support, the drop to 1.2812 level may extend beyond 38.2 percent of the rise.

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