Technical Analysis of GBP/USD for 08/05/2020:

Technical Analysis of GBP/USD for 08/05/2020:

Technical Market Outlook:

The GBP/USD pair has tested the technical support located at the level of 1.2297, made a low at the level of 1.2265 before the Pin Bar candlestick was made. The bounce from the support was shallow as the price has been capped again at the resistance located at the level of 1.2405. Please notice, the market is off the oversold levels and tries to extend the bounce higher towards the level of 1.2466 or 1.2485. The momentum is neutral so far, but if turns positive, then the odds for another wave up are higher.

Weekly Pivot Points:

WR3 – 1.2909

WR2 – 1.2757

WR1 – 1.2605

Weekly Pivot – 1.2476

WS1 – 1.2324

WS2 – 1.2200

WS3 – 1.2054

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. On the GBP/USD pair the main trend is down, but the reversal is possible when the corona virus pandemic will be tamed. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of this levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.

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