Technical Analysis of GBP/USD for August 21, 2020

Technical Market Outlook:

The GBP/USD pair has reversed all weekly losses again, broke above the short-term technical resistance and almost hit the weekly high established at the level of 1.3265 when the Doji candlestick pattern was made. This is another V-shaped reversal on the GBP/USD pair, so the battle between the bulls and bears is continued. If the weekly high is violated, then the next target is seen at the level of 1.3283, but the long-term target for bulls is still located at 1.3518. The immediate technical support is seen at the level of 1.3183 and 1.3169.

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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