Technical Market Outlook:
After the GBP/USD pair has broken out of the parallel channel zone and rallied towards the swing high located at 1.2645. The bulls were rejected at this level and then the rate dropped to the support located at 1.2580 and is currently hovering around it. Nevertheless, in order to continue the larger time frame up trend, the bulls must violate the swing high located at 1.2645 otherwise the current move up will be considered as a counter-trend corrective wave that will not last for long. It might be tricky, as there is a clear bearish divergence forming between the price and momentum oscillator already.
Weekly Pivot Points:
WR3 — 1.2379
WR2 — 1.2609
WR1 — 1.2480
Weekly Pivot — 1.2357
WS1 — 1.2228
WS2 — 1.2104
WS3 — 1.1970
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. On the GBP/USD pair the main trend is down, but the reversal is possible when the corona virus pandemic will be tamed. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of this levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404).
