Technical Market Outlook
The GBP/USD rally had been rejected at the level of technical resistance located at 1.2406 and is currently testing the local trend line dynamic support. Any violation of this line will lead to a further sell-off. The larger time frame trend remains up, but in the short-term the bears are in control of the market and the next target for them is located at the level of 1.2246 and 1.2165. Please notice, that the level of 1.2165 had been providing support for some time now, so any violation of this level will lead to a deeper sell-off towards 1.2000.
Weekly Pivot Points:
WR3 - 1.2855
WR2 - 1.2741
WR1 - 1.2613
Weekly Pivot - 1.2507
WS1 - 1.2367
WS2 - 1.2267
WS3 - 1.2125
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 coronavirus 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).
