Technical analysis of GBP/USD for July 23, 2020

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Overview:

The GBP/USD pair is going to continue to rise from the level of 1.2689 in the long term. It should be noted that the support is established at the level of 1.2689 which represents the 78.6% Fibonacci retracement level on the H4 chart.

The price is likely to form a double bottom in the same time frame.

Accordingly, the GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.2689. So, buy above the level of 1.2689 with the first target at 1.2812 in order to test the daily resistance 1 and further to 1.2885.

The price of 1.2812 will form a double top.

Also, it might be noted that the level of 12885 is a good place to take profit.

On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2689, a further decline to 1.2589 can occur which would indicate a bearish market.

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