Technical Analysis of GBP/USD for October 5, 2020

Technical Market Outlook:

The GBP/USD pair has been trading in a narrow range located between the levels of 1.2868 - 2979 where the Bearish Sandwich candlestick pattern had been made at the H4 time frame chart. The price pulled-back towards the level of 1.2848, which is just in the middle of the wide demand zone. Nevertheless, the target for bulls is still seen at the level of 1.2979 and 1.3017 and strong and positive momentum support this short-term outlook despite the overbought market conditions. The technical support for bears is seen at the levels of 1.2848, 1.2816 and 1.2786.

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).

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