Technical Analysis of GBP/USD for July 31, 2020:

Technical Market Outlook:

The GBP/USD pair has made another local high at the level of 1.3141, just a little above the technical resistance located at 1.3121, which is rather another confirmation of the positive sentiment despite the extremely overbought market conditions. The bulls are still in control over this market and the next target for bulls is seen at the level of 1.3199. The nearest support is seen at the level of 1.3067 and 1.3047. Please notice the extremely overbought market conditions despite strong and positive momentum might result in dynamic pull-back soon. Today is the last day of the month, so the end of the mont's flos might interrupt the bullis plans.

Weekly Pivot Points:

WR3 - 1.3215

WR2 - 1.2993

WR1 - 1.2929

Weekly Pivot - 1.2717

WS1 - 1.2632

WS2 - 1.2427

WS3 - 1.2355

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 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 material has been provided by InstaForex Company -