Technical Analysis of GBP/USD for November 5, 2020

Technical Market Outlook:

Not much has changed since yesterday as the GBP/USD pair keeps making the up and down swings as the votes of the presidential elections in the USA are still being collected. The price has broken out of the acceleration channel and made a local high at the level of 1.3136, but the four hour candle closed way below the top, at the level of 1.3027. Currently, it looks like the US Dollar is getting stronger again and the Pound continues the move to the downside towards the short -term trend line support. Any sustained violation of this trend line will indicate more bearish pressure that can push the prices to the level of 1.2868, 1.2848 or even 1.2816. The weak and negative momentum supports the short-term bearish outlook despite the oversold market conditions. Only a sustained breakout above the level of 1.2982 would change the intraday outlook to bullish.

Weekly Pivot Points:

WR3 - 1.3236

WR2 - 1.3153

WR1 - 1.3037

Weekly Pivot - 1.2956

WS1 - 1.2835

WS2 - 1.2757

WS3 - 1.2653

Trading Recommendations:

The GBP/USD pair is in the down trend on the monthly time frame, but the recent bounce from the low at 1.1411 made in the middle of March 2020 looks very strong and might be a reversal swing. In order to confirm the trend change, the bulls have to break through the technical resistance seen at the level of 1.3518. All the local corrections should be used to enter a buy orders as long as the level of 1.2674 is not broken.

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