Weekly Technical Outlook: GPB/USD; Market Forecasts for August 28th – September 1st

• Resistance level 1.2964, 1.3039, 1.3134
• Pivot Level 1.2842
• Support Level 1.2770

Technical Analysis

The GBP/USD pair that has closed weekend is trading above 1.2842 levels. The pair gets a good support base that reinforces the expectations of changing towards the bullish bias. It provides signals for the price recovery in the upcoming days. The pair is supported by stochastic positivity that appears clearly on the daily time frame rising above 16.0 levels. The pair remains bullish for the moment with the pair trading on rebound after testing barriers. This makes the trading settle now at the support area that appears in the chart. Some consolidations would be seen with bullish momentum and the price action producing two bar reversal. A further rise is expected from current levels on the new found support area. The beginning of the new trend and the first main target are located at 1.2964. The breaking of the 1.2964 level besides holding above it will push the price to resume its bullish momentum. Its next target is located at the 1.3039 level.

Economic

• Consumer Credit, Mortgage Approvals
• Inflation Report Hearings, Markit Manufacturing PMI
• Goods Trade Balance, ADP Employment Change, Gross Domestic Product Annualized
• Initial Jobless Claims, Unemployment Rate, Nonfarm Payrolls
• Michigan Consumer Sentiment Index, ISM Manufacturing PMI

Area of Interest

• Strong support at 1.2842 areas and closed above rebound of trend line.
• Bullish momentum above the support area with two bar reversal.
• Price action closed above rebound of trend line and oscillator rising above 16.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.