Technical Analysis of GBP/USD for October 14, 2020

Technical Market Outlook:

After the local high was made at the level of 1.3081, the GBP/USD pair has reversed all the gains and moved down sharply. The bears has broken below the local technical support located at 1.3017 and 1.2979 and are heading towards the upper main channel line seen around the level of 1.2900. The market is still coming off the overbought levels and the momentum is now negative. The next target for bears is seen at the level of 1.2868 and 1.2848.

Weekly Pivot Points:

WR3 - 1.3328

WR2 - 1.3191

WR1 - 1.3137

Weekly Pivot - 1.2992

WS1 - 1.2933

WS2 - 1.2792

WS3 - 1.2730

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).


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