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Today the GBP/USD reached a new local low of 1.1621. As the dollar continues to strengthen in the foreign exchange market, the pound is rapidly falling down. As follows from today's report from the Bank of England, the volume of mortgage lending rose in July by 5.05 billion pounds, consumer lending - by 1.425 billion pounds. At the same time, net lending to individuals rose by 6.5 billion pounds, which suggests that citizens are forced to increase borrowing in order to maintain their usual level of consumption - with inflation continuing to rise, consumer prices are also skyrocketing.
Accordingly, the pound is nominally depreciating.
If the pressure on the pound does not ease, then the GBP/USD may soon test the March 2020 low near 1.1410.
In general, the downward dynamics of the GBP/USD remains.
In an alternative scenario, the breakdown of the important short-term resistance level 1.1809 (EMA200 on the 1-hour chart) will signal the resumption of the upward correction with targets at the resistance levels 1.1980 (EMA200 on the 4-hour chart), 1.2000, 1.2050 (EMA50 on the daily chart). Further growth is unlikely given the Fed's tough stance on monetary policy, while the Bank of England appears to be running out of resources in this regard.
Support levels: 1.1650, 1.1600, 1.1500, 1.1410
Resistance levels: 1.1760, 1.1809, 1.1980, 1.2050, 1.2120, 1.2270
Trading recommendations
Sell Stop 1.1615. Stop Loss 1.1770. Take Profit 1.1600, 1.1500, 1.1410
Buy Stop 1.1770. Stop Loss 1.1615. Take-Profit 1.1809, 1.1980, 1.2050, 1.2120, 1.2270
