Technical Market Overview:
The GBP/USD pair has been trading around the level of 1.2206 as the coronavirus pandemic continues. The market has fallen out of the descending channel in extremely oversold conditions on the H4 timeframe, so some kind of bounce is possible. The overall corrective cycle had been very aggressive so far and the recent breakout from the main channel (marked in brown) does not look good for bulls. The next target for bulls is seen at the level of 1.2411 and 1.2505. The immediate technical support is seen at the level of 1.2282 and in the case of a down move extension, the next support is located at the level of 1.2206.
Weekly Pivot Points:
WR3 - 1.3660
WR2 - 1.3418
WR1 - 1.2726
Weekly Pivot - 1.2493
WS1 - 1.1781
WS2 - 1.1553
WS3 - 1.0829
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. 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 1.3512.
