Technical Analysis of GBP/USD for October 6, 2020

Technical Market Outlook:

The GBP/USD pair has hit the target located at the level of 1.2979 in overbought market conditions. The odds are now in favour for the bears, that might push the prices back into consolidation zone again. The technical support for bears is seen at the levels of 1.2868 and 1.2848 and if any of this level is hit, the short-term up move is terminated and the market is back to the mid-term down trend.

Weekly Pivot Points:

WR3 - 1.3265

WR2 - 1.3116

WR1 - 1.3034

Weekly Pivot - 1.2892

WS1 - 1.2811

WS2 - 1.2658

WS3 - 1.2571

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