Technical Analysis of GBP/USD for August 19, 2020

Technical Market Outlook:

The GBP/USD pair has made a new swing high at the level of 1.3265 after the strong breakout above the level of 1.3199. The next target is seen at the level of 1.3283 and as long as the level of 1.2979 is not clearly violated, all the down waves will be treated just as a pull-backs, not a correction. However, it is worth to notice, that the market coditions are now overbought despite strong and positive momentum, so the potential pull-back might be just around the corner. The levels of 1.3183 - 1.3169 will now act as a demand zone for GBP bulls.

Weekly Pivot Points:

WR3 - 1.3292

WR2 - 1.3216

WR1 - 1.3155

Weekly Pivot - 1.3068

WS1 - 1.3000

WS2 - 1.2930

WS3 - 1.2880

Trading Recommendations:

On the GBP/USD pair the main, multi-year trend is down, which can be confirmed by the down candles on the monthly time frame chart. Nevertheless, the recent rally form the multi-year lows seen at the level of 1.1404 has been successful and the trend might be reversing. 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 towards the key long-term technical support is seen at the level of 1.1404.

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