Technical Analysis of GBP/USD for July 3, 2020:

Technical Market Outlook:

The GBP/USD pair has made a local high at the level of 1.2528, but the rally had ended up with a Bearish Engulfing candlestick pattern at its very top. The market is currently trading at the edge of the overbalance which is seen at the level of 1.2458. Any violation of this level will increase the sell-off towards the nearest technical support located at 1.2406 and 1.2362. Please notice, the market conditions are overbought, so despite strong and positive momentum the pull-back is still expected.

Weekly Pivot Points:

WR3 - 1.2667

WR2 - 1.2600

WR1 - 1.2441

Weekly Pivot - 1.2377

WS1 - 1.2213

WS2 - 1.2143

WS3 - 1.1969

Trading Recommendations:

On the GBP/USD pair the main trend is down, which can be confirmed by the down candles on the weekly time frame chart. 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 even lower in the longer-term.

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