The downward dynamics of the GBP/USD remains. Despite yesterday's upward correction, the pair may soon break yesterday's local low since April 2020 at 1.1717, heading towards multi-year record lows below 1.1500, reached in March 2020, when the world's largest central banks, including the Bank of England, sharply reduced their interest rates, also launching unprecedented programs to support the population and businesses during the start of the coronavirus pandemic.
Things may not come to a fall to these levels, but the downward trend in the GBP/USD dynamics continues. Thus, the breakdown of local lows at 1.1760, 1.1717 will be a signal to resume short positions in GBP/USD.
In an alternative scenario, a breakdown of the important short-term resistance level 1.1934 (200 EMA on the 1-hour chart) will signal the resumption of an upward correction with targets at resistance levels 1.2000, 1.2054 (200 EMA on the 4-hour chart), 1.2120 (50 EMA on the daily chart). Further growth looks unlikely so far. Although, it is also not ruled out if the rhetoric of Powell's statements at the Jackson Hole forum is considered "dovish" by market participants.
In the meantime, short positions remain preferable. Below key resistance levels 1.2525 (144 EMA on the daily chart), 1.2690 (200 EMA on the daily chart), GBP/USD remains in the long-term bearish market zone.
Support levels: 1.1760, 1.1717, 1.1500, 1.1410
Resistance levels: 1.1934, 1.2000, 1.2054, 1.2120, 1.2270, 1.2525, 1.2690
Trading Tips
Sell Stop 1.1780. Stop-Loss 1.1885. Take-Profit 1.1760, 1.1717, 1.1600, 1.1500, 1.1410
Buy Stop 1.1885. Stop-Loss 1.1780. Take-Profit 1.1934, 1.2000, 1.2054, 1.2120, 1.2270, 1.2525, 1.2690
