According to our analysis published on 10th August, we anticipated bearish rally from cables due to being affected by high rise in covid cases, specially after delta variant. Cables failed to break above our major resistance 1.39821 and continued its dovish tone from beneath the Senkou Span B of ichimoku cloud and falling all the way below exponential moving average 200 and struggling with 50 at the moment. Since the middle of Monday's trading, the GBP/USD has continued to trade between the 1.3700 and 1.3750 levels. On Wednesday morning, the rate was approached by the support of the 55-hour simple moving average near 1.3710 and the 200-hour simple moving average at 1.3740.  A breaking of the resistance of the 1.3750 level could result in a surge to the 1.3800 mark. Note that the 1.3800 level's resistance was being strengthened by the weekly R1 simple pivot point at 1.3805. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GBP/USD is trading below 1.3750 but off the lows, as the US dollar stabilizes. Rising Delta covid variant concerns and anxiety ahead of Fed’s Jackson Hole Symposium keep investors away from the higher-yielding pound. US data in focus. Pound/dollar is struggling to top the 50 Simple Moving Average on the four-hour chart and remains below the 100 and 200 SMAs. On the other hand, momentum is to the upside. Bears' biggest advantage is the fact that the currency pair remains capped by the critical 1.3785 level – a clear separator of ranges. However, a decline below the 1.3700 level and the weekly simple pivot point at 1.3704 could look for support in the 100-hour simple moving average at 1.3680. A failure of the SMA to provide support would most likely result in another decline to the 1.3600 mark.

GBPUSD

Aug 25 2021

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