Trading Signal for GBP/USD for July 27 - 28, 2022: sell in case of pullback to 1.2101 (200 EMA - 3/8 Murray)

Important Update for RobotFX Visitors

We want to sincerely apologize for any confusion or inconvenience caused by our recent website restructuring.

The main RobotFX hub has officially moved to our new, streamlined address at robotfx.org (without the "www" prefix). While our main operations have shifted, we want to reassure you that this archives site, old.robotfx.org, will remain fully active. You can still access our complete library of past posts, historical trading analysis, and legacy articles right here.

However, for the latest updates, newer content, and a significantly faster, more optimized browsing experience, we highly recommend heading over to our primary home at https://robotfx.org.

Thank you so much for your continued support and patience as we improve our digital services.

According to the 4-hour chart, the British pound is trading below the 200 EMA located at 1.2108 and below the strong resistance of 3/8 Murray at 1.2085.

Strong resistance has been established at 1.2085 which has prevented the British pound from a further rise. In the next few hours, the Fed's policy update will be released. The regulator is expected to increase the interest rate, which could spark off a strong movement in the British pound.

Bullish optimism for GBP remains in play as long as the sterling trades above the 21 SMA located at 1.2019. The pound is expected to continue rising and could reach the resistance of 1.2101 (200 EMA).

Conversely, with a sharp break of the rising wedge pattern and a close below the psychological level of 1.20, we could expect an acceleration to the downside towards the support zone of 2/8 Murray at 1.1962 and even to 1/8 Murray at 1.1840.

On July 26, the eagle indicator reached the overbought zone, so a technical correction is likely in the next few hours. We could expect the GBP/USD pair to fall towards levels of 1.20 and 1.1962.

Our trading plan for the next few hours is to wait for a pullback towards 1.2101 to sell or wait for a sharp break below the psychological level of 1.2000 to sell with targets at 1.1962 (3/8 Murray), 1.1890, and 1.1840 (2/8 Murray).

Trading analysis offered by RobotFX and Flex EA.
Source