Technical Market Outlook:
The GPB/USD rally has been capped after the Bearish Engulfing candlestick pattern occurred on H4 time frame chart at the level of 1.3395. The market made a local into the demand zone located between the levels of 1.3264 - 1.3295, so the pair trades back into the main channel. The next target for bulls is still seen at the level of 1.3447(swing high) and then at 1.3512. The nearest technical support is located at 1.3306, 1.3295 and 1.3264. The strong and positive momentum supports the short-term bullish outlook.
Weekly Pivot Points:
WR3 - 1.3491
WR2 - 1.3401
WR1 - 1.3359
Weekly Pivot - 1.3256
WS1 - 1.3209
WS2 - 1.3108
WS3 - 1.3061
Trading Recommendations:
The GBP/USD pair is in the down trend on the monthly time frame, but the recent bounce from the low at 1.1411 made in the middle of March 2020 looks very strong and might be a reversal swing. In order to confirm the trend change, the bulls have to break through the technical resistance seen at the level of 1.3518. All the local corrections should be used to enter a buy orders as long as the level of 1.2674 is not broken.
