Technical analysis of GBP/USD for 08/01/2020:

Technical Market Overview:

The GBP/USD pair has fallen back into the channel zone (marked on the chart in black) and is trading back and forth around the level of 1.3130. In this situation, the bulls have taken control of the market and pushed the price towards the level of 1.3131, which is the local technical resistance level, but in order to continue the move higher the bulls must break through the level of 1.3171. The momentum has changed from neutral to positive, so the odds for another move up are high. The target for bears is seen at the level of 1.3017 or 1.2988.

Weekly Pivot Points:

WR3 - 1.3419

WR2 - 1.3347

WR1 - 1.3185

Weekly Pivot - 1.3120

WS1 - 1.2957

WS2 - 1.2894

WS3 - 1.2801

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509.

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