FxNews—The British pound’s uptrend has reached its 2023 all-time peak at 1.314 against the American dollar. As of writing, the GBP/USD currency pair trades slightly below the 2023 high at approximately 1.309.
The weekly chart below demonstrates the price and the key resistance level of the trading instrument in discussion.
GBPUSD Technical Analysis – 22-August-2024
Zooming into the 4-hour chart, we notice a shooting star candlestick, and the stochastic and relative strength index indicators are in overbought territory. This development in the technical indicators suggests the market is overbought, and the price could dip to the lower supply zones.
GBPUSD Forecast – 22-August-2024
The market is overbought. Hence, going long or buying positions is not advisable. We suggest waiting for the consolidated price near the August 19 high at approximately $1.299.
The $1.299 mark coincides with the ascending trendline, which offers a decent bid price for bulls to join the market. Traders and investors should monitor this level, followed by $1.293, for bullish candlestick patterns. In this scenario, if the price holds above 1.293, it will probably rise again to test the recent higher highs at 1.311.
- Also read: EUR/USD Technical Analysis – 22-August-2024
GBPUSD Support and Resistance Levels – 22-August-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 1.304 / 1.299 / 1.293
- Resistance: 1.311
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.