Technical Analysis of GBP/USD for September 8, 2020

Technical Market Outlook:

The GBP/USD pair has dropped below the level of 1.3215, which is below the 61% Fibonacci retracement. All the bounces are shallow and being used to open more sell orders. The last bounce was capped at the level of 1.3183 and since then the market has made a new local low at the level of 1.3130. The next key technical support is seen at the level of 1.3121. Any violation of this level will open the road towards the next support seen at the level of 1.3059. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.3726

WR2 - 1.3600

WR1 - 1.3421

Weekly Pivot - 1.3292

WS1 - 1.3102

WS2 - 1.2995

WS3 - 1.2802

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