GBP : Outlook for Next Week
(Sun, 16 Aug 2020). GBP/USD in consolidation within August range- just below uptrend resistance. Constructive while above 1.2481 – Critical resistance 1.3311/35. The British Pound contracted within the August opening-range this week with Sterling poised to close 0.4% high against the US Dollar. The move keeps Cable just below uptrend resistance with key technical objectives lined up just higher and while the broader outlook remains constructive, the immediate advance may be vulnerable IF this slope holds into the close. These are the updated targets and invalidation levels that matter on the GBP/USD weekly technical chart. Review my latest Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.
The immediate focus is on a the weekly close with respect to 1.3070/78- a level defined by the 78.6% retracement of the December 2019 decline and the yearly high-week close. A close above keeps the long-bias viable heading into next week but critical resistance levels are eyed just higher at the objective yearly open / 61.8% retracement of the 2018 decline at 1.3245/50 and the 100% ext / 2019 high-week close at 1.3311/35 – both levels of interest for possible topside exhaustion IF reached. Key support1.2717/54 with bullish invalidation now raised to 1.2481.
The Sterling breakout may be vulnerable here near-term while below channel resistance. From a trading standpoint, a good region to reduce long-exposure / raise protective stops - be on the lookout for possible topside exhaustion into these upcoming resistance targets – ultimately a larger pullback may offer more favorable opportunities closer to uptrend support with a breach above 1.3335 needed to unleash the next leg higher in Cable.I’ll publish and updated Sterling Price Outlook once we get further clarity on the near-term GBP/USD technical trade levels.
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