Technical Analysis of GBP/USD for 01/05/2020:

Technical Market Outlook:

After the GBP/USD pair has broken out of the parallel channel zone and rallied towards the swing high located at 1.2645. The bulls were rejected at this level and then the rate dropped to the support located at 1.2580 and is currently hovering around it. Nevertheless, in order to continue the larger time frame up trend, the bulls must violate the swing high located at 1.2645 otherwise the current move up will be considered as a counter-trend corrective wave that will not last for long. It might be tricky, as there is a clear bearish divergence forming between the price and momentum oscillator already.

Weekly Pivot Points:

WR3 — 1.2379

WR2 — 1.2609

WR1 — 1.2480

Weekly Pivot — 1.2357

WS1 — 1.2228

WS2 — 1.2104

WS3 — 1.1970

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. On the GBP/USD pair the main trend is down, but the reversal is possible when the corona virus pandemic will be 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 this levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404).


The material has been provided by InstaForex Company -