Technical Market Outlook:
The GBP/USD pair has been rejected at the previous high at the level of 1.2645 and it is possible, that a Double Top pattern was made at the end of the move. Since then the bears have managed to push the prices towards the level of 50% Fibonacci retracement located at 1.2443. Any violation of this level will open the road towards the next target for bears seen at 61% Fibonacci retracement at 1.2397. There is a short-term ascending trend line close to this level, so it might get tough for bears to violate it in one go. Please notice, the market is coming off the overbought levels and the momentum indicator is neutral, but when it turn south, then the sell-off might accelerate towards 1.2246 level.
Weekly Pivot Points:
WR3 - 1.2909
WR2 - 1.2757
WR1 - 1.2605
Weekly Pivot - 1.2476
WS1 - 1.2324
WS2 - 1.2200
WS3 - 1.2054
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). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.
