GBP/USD Technical Analysis: Cable retreating from weekly highs - Rising Wedge can target 1.2957 level

  • GBP/USD main bear trend has been on hold since mid-August. 
  • GBP/USD is currently pulling back after grinding higher all week. GBP/USD is evolving in a rising wedge (green lines) suggesting that any further advances might be limited for the time being. The RSI, MACD and Stochastics are showing some signs of exhaustion as well. 
  • Targets for a pullback down can be located near 1.3050 (August 30 swing high, key level) and 1.2957 (July 19 swing low). 

GBP/USD 4-hour chart

Spot rate:                    1.3095
Relative change:        -0.09%     
High:                           1.3144
Low:                            1.3082

Main trend:                 Bearish 
Short-term trend:        Bullish above 1.2800

Resistance 1:             1.3082-1.3100 supply/demand level and figure
Resistance 2:             1.3200 figure (key support/resistance)
Resistance 3:             1.3300 figure

Support 1:                  1.3050 August 30 swing high, key level
Support 2:                  1.3000 figure
Support 3:                  1.2957 July 19 swing low
Support 4:                  1.2937 August 22 swing high
Support 5:                  1.2900 figure
Support 6:                  1.2868 August 22 low 
Support 7:                  1.2845, August 29 low
Support 8:                  1.2800 August 24 swing low

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