Technical Analysis of GBP/USD for 11/05/2020:

Technical Analysis of GBP/USD for 11/05/2020:

Technical Market Outlook:

The GBP/USD pair has returned to the middle of the trading range after the local low at the level of 1.2265 had been made. The 50% Fibonacci retracement has been tested on the way up, but so far the bulls were rejected from this level and are hovering around 1.2425 in neutral market conditions. The momentum remains neutral as well, but due to the fact, that the price is trading below the short-term trend line resistance, the odds for another wave down might be higher. The nearest technical resistance is seen at the level of 1.2466 and the nearest technical support is located at the level of 1.2297.

Weekly Pivot Points:

WR3 – 1.2730

WR2 – 1.2608

WR1 – 1.2508

Weekly Pivot – 1.2380

WS1 – 1.2283

WS2 – 1.2157

WS3 – 1.2054

Trading Recommendations:

The fear of the coronavirus consequences has decreased among the global investors 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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