Technical analysis of GBP/USD for 05/07/2019:

Technical Overview:

The GBP/USD pair has been trading inside of a narrow horizontal range located between two levels of 1.2559 - 1.2605 and is trying to bounce, but so far no avail as the downtrend is still in force. The key support is seen at the level of 1.2505 and if this level is violated the downtrend will accelerate. On the other hand, the nearest technical resistance is seen at the level of 1.2605.

Weekly Pivot Points:

WR3 - 1.2870

WR2 - 1.2829

WR1 - 1.2757

Weekly Pivot - 1.2708

WS1 - 1.2629

WS2 - 1.2585

WS1 - 1.2508

Trading Recommendations:

The best strategy for the current market conditions is to buy the corrections in anticipation of the uptrend to resume. This strategy is valid as long as the level of 1.2505 is clearly violated. The larget time frame trend is still down and the recent rally up is the first sign the trend might be reversing. The key long-term technical resistance is seen at the level of 1.2775 and only if this level is violated, there is a chance for the trend reversal.

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The material has been provided by InstaForex Company - www.instaforex.com