Detailed FX Market Outlook and Analysis

GBP/USD Daily Anaysis 23-August-2022

GBP/USD Daily Analysis

GBP/USD’s break of 1.1759 support confirms the resumption of the larger downtrend. Intraday bias stays on the downside. The next target is 1.1409 long-term support. On the upside, above 1.1835 minor resistance will turn intraday bias neutral and bring consolidations. But recovery should be limited well below 1.2292 resistance to bring another decline.

In the bigger picture, a fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low), or resuming the longer-term downtrend. A deeper decline is expected as long as the 1.2292 resistance holds. The next target is 1.1409 low. However, a firm break of 1.2292 will bring a stronger rise back to 55 weeks EMA (now at 1.2859).

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