Technical Analysis of GBP/USD for May 22, 2020:

Technical Market Outlook:

After the GBP/USD pair has made a new local high at the level of 1.2297, the bearish pressure intensified and the price has tested the upper channel line and bounced from it. The momentum remains negative to neutral, the market conditions are overbought, so the odds for another wave up are now lower. The nearest technical resistance seen at the level of 1.2165 was violated already, so now the target is seen at the level of 1.2246. If the level of 1.2072 is clearly violated, then the next target for bears is seen at the level of 1.2012, which is the key short-term technical support for bulls. No signs of down trend reversal yet.

Weekly Pivot Points:

WR3 - 1.2598

WR2 - 1.2514

WR1 - 1.2258

Weekly Pivot - 1.2179

WS1 - 1.1913

WS2 - 1.1832

WS3 - 1.1572

Trading Recommendations:

On the GBP/USD pair the main trend is down, but the reversal will be possible when the coronavirus pandemic is 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 these 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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