GBPUSD Retreats From Yearly High at 1.3267 Level As Brexit-EU Talks End Without Success

GBPUSD Technical Analysis – August 23

The GBPUSD pair ended the week unaltered in the price region of 1.3085, retreating from the year-high at 1.3267 level tested during the mid-week preceding. Nonetheless, the Brexit-related news was not so positive as yet another round of talks ended without success.

Key Levels
Resistance Levels: 1.3514, 1.3303, 1.3185
Support Levels: 1.2982, 1.2812, 1.2647
GBPUSD Long term Trend: Bullish
The GBPUSD pair’s daily chart illustrates it ended just around a bullish moving average 5 and 13, which tends to advance beyond the horizontal support lines. Consequently, technical indicators such as the RSI started to recede, with the momentum pushing towards its midline.

Although the rebound from the 1.1409 level is intense in the wider context, there is still not enough justification for a trend reversal. Nonetheless, a convincing breach of 1.3514 level might at least ensure bottoming in the medium term and bring out the bullish potential for 1.4376 resistance level initially.
GBPUSD Short term Trend: Ranging
Last week, GBPUSD crept higher to 1.3267 level but retreated swiftly. First of all, the initial bias this week is optimistic. So long as 1.3050 support level stays, a further increase is slightly in favor. The steady 100% forecast breach of 1.1409 to 1.2647 levels from 1.2075 to 1.3303 levels may open the path for next to 1.3514 structural resistance level.

Nonetheless, given the state of bearish divergence in 4 hrs RSI, a breach of 1.2982 level may validate short-term topping. The intraday bias is switched back to the downside for ascending trendline support (now at level 1.2731).

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