Technical Analysis of GBP/USD for September 23, 2020

Technical Market Outlook:

After the GBP/USD pair had broken out from a narrow consolidation zone seen between the levels of 1.2869 - 1.2979 the bears has hit the 38% Fibonacci retracement located on the level of 1.2697 on the Daily time frame chart. The immediate technical resistance is still seen at the level of 1.2749 and it should temporary stop any bullish attempts. The intraday technical support is seen at the levels of 1.2686 and 1.2668. Momentum is weak and negative, which supports the short-term bearish outlook despite the oversold market conditions.

Weekly Pivot Points:

WR3 - 1.3253

WR2 - 1.3131

WR1 - 1.3027

Weekly Pivot - 1.2896

WS1 - 1.2795

WS2 -1.2660

WS3 - 1.2557

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. The key long-term technical resistance is still seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518 is the reversal level) or accelerate towards the key long-term technical support is seen at the level of 1.1903 (1.2589 is the key technical support for this scenario).

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