Technical Analysis of GBP/USD for 07/05/2020:

Technical Market Outlook:

The GBP/USD pair has broken below the short-term trend line support and below the technical support from the level of 1.2406. Please notice, the momentum indicator is now negative, so the sell-off might accelerate towards 1.2246 level. It looks like bulls are not strong enough to push the price above the level of 1.2485 again and the price is consolidating in a narrow zone before the plunge.

Weekly Pivot Points:

WR3 - 1.2909

WR2 - 1.2757

WR1 - 1.2605

Weekly Pivot - 1.2476

WS1 - 1.2324

WS2 - 1.2200

WS3 - 1.2054

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