Pound aiming higher, dip presents buy opportunity – GBPUSD forecast

  • A positive theme has continued since we highlighted GBPUSD bullish threats here last week .
  • This despite the still negative soundings from EU/UK trade negotiations.
  • The US Dollar has renewed its more bearish theme, which has seen most major currencies benefit against the greenback.
  • A dip over the past 24 hours, but we see this as a long entry opportunity and still see GBPUSD upside potential today, this week and for early September.

GBPUSD day trade outlook: Another bull extension

A firm advance Tuesday to above 1.3422 and 1.3469 resistances to a new cycle high at 1.3483, to build on the strong late August rally above the key peak from December 2019 at 1.3284 and a 1.3330 target, and the prior rebound from our 1.3053/45 support area, and despite a dip back lower, whilst above 1.3301 to keep the risk to the upside into Wednesday. 

Day trade setup

  • We see an upside bias for 1.3435 and the new cycle high at 1.3483; above aims towards 1.3500/15.
  • But below the 1.3301 aims for 1.3262 support, which we would look to try to hold; below opens risk down to 1.3216.

GBPUSD intermediate-term outlook

The early July push above 1.2542 signalled an intermediate-term shift to a bull trend.

Upside risks: We see an intermediate-term bull trend to aim for 1.3515.

  • What changes this? Below 1.2981 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
6 Hour GBPUSD Chart
6 Hour GBPUSD Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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