European session, date: 08/06/2024
The GBPUSD pair experienced significant volatility in the early days of August 2024. Initially, the pair saw a sharp decline, followed by a strong recovery the next day, resulting in a volatile trading range dominated by a downward trend. The pair opened the week at $1.2808, reaching its highest level at $1.2815 and its lowest at $1.2709. In this technical analysis, we will review the performance of the pair and the technical indicators that indicate the continuation of selling pressures.
GBPUSD Pair Technical analysis: Overview
The GBPUSD pair witnessed sharp fluctuations in the first days of August 2024, as it witnessed a sharp recovery with a drop at the beginning and then a strong rise the next day, to return and trade in a volatile range dominated by the downward trend. The pair opened the week at $1.2808, and recorded a high so far at $1.2815, while reaching a low of $1.2709. In this technical analysis, we will review the performance of the pair and the technical indicators that indicate the continuation of selling pressure.
Fundamental factors:
Fundamental factors play an important role in determining the movement of the GBPUSD pair. Economic and political concerns in the UK and the US continue to have a significant impact on the market. Fluctuations in economic data and expectations of monetary policies by central banks contribute to price volatility.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.2745 | 1.2718 |
| Point 1 (TP1) | First resistance: 1.2775 | First support: 1.2683 |
| Target Point 2 (TP2) | Second resistance: 1.2800 | Second support: 1.2653 |
| Stop Loss (SL) | 1.2718 | 1.2745 |
Despite the brief recovery in the first days of August, the downtrend remains dominant in the GBPUSD pair. Therefore, traders are advised to closely monitor key technical levels. For instance, the support at $1.2700 and resistance at $1.2800 could provide crucial signals regarding the pair’s future direction. Making informed trading decisions based on technical and fundamental analysis will be essential to achieving the best results in this market volatility.
