The GBPUSD has rallied (+0.98%) from 1.3604 to 1.3722 to test the 23.6 % Fib retracement level at 1.3725 on the trading session. If the 23.6% level is broken, the next level to watch for is 38.2% (1.3823), then 50% (1.3896) and 61.8% (1.3973).

Market Correlation analysis: The market is in a Risk-on Mode, the Major Indices have rallied and investors sold-off the US dollar, consequently the GBPUSD did rally as the DXY did fall. If the market will continue in a risk-on Mode, the GBPUSD could continue to climb up to the next resistance levels.

Pivot Points on GBPUSD on H1 time frame: The pair has a pivot point at (1.3664) and S1 (1.3624), S2 (1.3564). S3 (1.3526), and R1 (1.3721), R2 (1.3761). R3 (1.3800).

MACD indicator: The indicator has given a buy signal and is showing strong Bullish Momentum bars. MACD reading is Bullish and remains in favor for the bulls at the meantime.

RSI Indicator: The GBPUSD has fallen to 18 level which is Over-sold, the Cable did recover this sell-off and RSI reading is 53.3 which suggests more bullish move is possible.

News to watch for: UK CBI Realized Sales on Wednesday Aug 25th, the USA news Prelim GDP q/q on Thursday, and Core PCE Price Index m/m on Friday and Fed Chair Powell Speech. And Jackson Hole Symposium on Thursday and Friday.

Conclusion: GBPUSD has recovered some of its losses, and in a strong correction at the moment, correction is expected to extend to 38.2% (1.3823) and possible 62.8% (1.3973) level, before we see the down-trend to resume.

GBPUSD rallied +0.98% and remains Bullish

Aug 24 2021