Technical Analysis of GBP/USD for August 28, 2020

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Overview:

The GBP/USD pair continues to move upwards from the level of 1.3200.

Yesterday, the pair rose from the level of 1.3200 (the level of 1.3200 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 1.3289.

Today, the first support level is seen at 1.3199 followed by 1.3143, while daily resistance 1 is seen at 1.3340.

According to the previous events, the GBP/USD pair is still moving between the levels of 1.3200 and 1.3340; for that we expect a range of 140 pips (1.3340 - 1.3200).

On the one-hour chart, immediate resistance is seen at 0.3299, which coincides with the double top. Currently, the price is moving in a bullish channel.

This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50).

Therefore, if the trend is able to break out through the first resistance level of 1.3299, we should see the pair climbing towards the daily resistance at 1.3340 to test it.

The second resistance has already set at the price of 1.3390.

It would also be wise to consider where to place stop loss; this should be set below the second support of 1.3109.

The material has been provided by InstaForex Company - www.instaforex.com