Technical analysis of GBP/USD for 05/03/2020:

Technical Market Overview:

The GBP/USD pair has made a new local high at the level of 1.2878 as the corrective bounce is getting stronger. This behavior might indicate increased bullish activity, so they are defending the key technical support levels. The momentum behind the move is now positive, so the next target for bulls is seen at the level of 1.2904 and 1.2939. On the other hand, the next target for bears is seen at the level of 1.2747 and 1.2705. This would also mean the GBP/USD is again back to the wilder trading zone.

Weekly Pivot Points:

WR3 - 1.3239

WR2 - 1.3125

WR1 - 1.2954

Weekly Pivot - 1.2840

WS1 - 1.2657

WS2 - 1.2545

WS3 - 1.2353

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. In order to reverse the trend from up to down in the longer term, 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 1.3512.

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