$GBPUSD Daily Technical Outlook and Review – Friday 29th August

The higher-timeframe picture resembles the following:

• Weekly TF: There is clear selling pressure from the major weekly supply area at 1.76297-1.67702, as price has smashed through the weekly demand area at 1.66917-1.67939 with little trouble, and is now currently seen trading quite deep within the weekly demand area below at 1.64589-1.66339. Is there any chance higher prices will be seen from this weekly demand area?

• Daily TF: Any buyers who attempted to trade the daily demand area at 1.65492-1.66044 have now likely been forced to cover their positions as a break below has been seen. The path south is very likely clear down to the daily demand area at 1.64589-1.64949, nonetheless, we are fully prepared for price to retrace up to at least the daily supply area at 1.67364-1.67105 before the aforementioned daily demand area is hit.

A small consolidation (1.65654/1.66) has formed around the round number 1.66 on the 4hr chart. A spike/wick above the range/round number level was seen, but sellers did not appear to be too keen on taking things much lower from there.

Something to keep in mind is that we are trading deep within a weekly demand area (1.64589-1.66339) at the moment, so higher prices could very well be seen soon. A push above the round number 1.66 will likely trigger buying interest up to at least the 4hr S/R flip level at 1.66563, and at this point we would likely be looking for longs our self!

However, a short-term shorting opportunity may present itself if we seea break below thelowmarked with a blue arrow at 1.65340 sometime today, we will then be looking for a short-term sell around the round number 1.66, if, and we must emphasize the word ‘if’ here, we do not hit the round number below at 1.65 first. Be sure to keep in mind this is only a short-term opportunity, and we are fully aware of where price is currently located within the higher timeframe picture (trading quite deep within the weekly demand area at 1.64589-1.66339), so we should remain extra cautious with trades like this.

Pending orders/P.A confirmation levels:

• Pending buy orders (Green line) are seen just above a 4hr decision-point level (1.64895) at 1.64944. The main reason we have gone with a pending buy order on this one is simply because we are currently located around a nice-looking weekly demand area at 1.64589-1.66339, and that this 4hr level remains untouched for the time being.
• No P.A confirmation buy levels (Red line) are seen in the current market environment.

• No pending sell orders (Green line) are seen in the current market environment.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.

Quick Recap:

Remains the same as the last analysis:

We currently have our eye on a short-term sell opportunity around the round number 1.66 if price breaks below the low marked with a blue arrow at 1.65345, and we do not hit the round number below at 1.65 first, we will then be looking to enter at a possible retrace at the round number 1.66. As already said (above) this is only a short-term opportunity, and we remain fully aware of where price is currently located within the higher timeframe picture (within a serious weekly demand area at 1.64589-1.66339). However, we are still trading within weekly demand (levels above); higher prices could be seen at any time. A push above the round number 1.66 will likely trigger buying interest up to at least the 4hr S/R flip level at 1.66563, and at this point we would likely be looking for longs our self!

• Areas to watch for buy orders:P.O: 1.64944 SL: 1.64497 TP: Dependent on how price approaches) P.A.C: No P.A confirmation buy levels are seen in the current market environment.

• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: No P.A confirmation sell levels are seen in the current market environment.