20.08.202008:24 Forex Analysis & Reviews: Technical Analysis of GBP/USD for August 20, 2020

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Technical Market Outlook:

The GBP/USD pair has reversed all weekly gains and broke below the short-term trend line support as well. The swing top has been established at the level of 1.3265 when the Doji candlestick pattern was made. Currently the market is coming off the overbought conditions and the momentum is below its fifty level already. The next target for bears is seen at the level of 1.3017 and the immediate resistance is seen at the level of 1.3121. The larger time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.3292

WR2 - 1.3216

WR1 - 1.3155

Weekly Pivot - 1.3068

WS1 - 1.3000

WS2 - 1.2930

WS3 - 1.2880

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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