Technical Analysis of GBP/USD for October 7, 2020

Technical Market Outlook:

After the GBP/USD pair had hit the target located at the level of 1.2979 (high was made at the level of 1.3006) in overbought market conditions, the market reversed and dropped towards the level of 1.2866, which was the nearest technical support. If the price will enter the old main channel zone, then the sell-off might accelerate, so the key technical support is currently seen at the level of 1.2848. Overbought market conditions and weak momentum support the short-term bearish outlook.

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