The GBPUSD pair has been in a strong upward trend since early July. The target of demand seems to be a supply zone starting at 1.3320. But before this target is reached, we can expect a correction of recent strong growths.

gbpusd daily august 2020
GBPUSD Daily – price broke out from a triangle

The first two weeks of August saw the price remaining in the consolidation, which took the shape of a triangle.

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Yesterday, 18.08, the price hit the resistance of the triangle with great impetus, reaching 1.3250. This morning, after quite positive data from the UK, it was also upwards, but by noon there appeared declines.

GBPUSD h4 August outside bar
GBPUSD H4 – price breaks out from the outside bar pattern

On the H4 chart appeared Outside Bar, from which the GBPUSD broke down thru the bottom. According to the assumptions of the PA+MACD strategy, if the break-out from the formation is accompanied by a change of direction on MACD – this is a signal to continue the declines and start the correction.

The MACD currently “lights up” in red, which makes it more likely that the downward scenario is in play. A good place to take a short position can be around the lower limit of outside bar 1.3230-10. The supply target can be the lately broken resistance of the triangle (blue line).


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