Technical Market Overview:
The GBP/USD pair has been trading around the key multi-month technical support located at the level of 1.1983 as the coronavirus pandemic continues. Any breakout below this level will invalidated the upward impulsive scenario and the market will return to the downtrend. The market has fallen out of the descending channel in extremely oversold conditions on the H4 timeframe, so some kind of bounce is possible. The overall corrective cycle had been very aggressive so far and the recent breakout from the main channel (marked in brown) does not look good for bulls. The next target for bulls is seen at the level of 1.2411 and 1.2505.
Weekly Pivot Points:
WR3 - 1.3660
WR2 - 1.3418
WR1 - 1.2726
Weekly Pivot - 1.2493
WS1 - 1.1781
WS2 - 1.1553
WS3 - 1.0829
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. The key long-term technical support is seen at the level of 1.1983 and the key long-term technical resistance is located at the level of 1.3512. Trade safe.
