GBPUSD Daily Analysis – August 7, 2023

GBPUSD experienced a rebound from the 1.2619 level after being contained by the support at 1.2590.

However, it is important to note that as long as the price remains below the falling trend line on the 4-hour chart, the recent bounce should be considered as a consolidation phase within the overall downtrend from 1.3141. This suggests that another potential fall to test the 1.2590 support level is still possible after the consolidation. A breakdown below this level might trigger a further downside move towards the 1.2500 area.

In terms of resistance, immediate resistance can now be found at 1.2791. A break above this level could propel the price towards the falling trend line. It is worth mentioning that only a decisive breakout above the resistance level would indicate a possible completion of the downtrend.

To summarize, the analysis suggests that GBPUSD’s recent rebound could be viewed as a consolidation phase within the downtrend. Monitoring the price’s behavior around the falling trend line and key support and resistance levels will be crucial in assessing potential breakout or reversal signals. Traders should remain cautious and adapt their strategies accordingly.