05.10.202011:36 Forex Analysis & Reviews: Technical analysis of GBP/USD for October 5, 2020

Overview :

• Pivot point : 1.2865

Technically : Last week, the GBP/USD pair profit target reached perfectly to the highest price of 1.2978, but it closed at 1.2930. Probably we prepare for another bounce this week.

It was an important one for the GBP/USD pair, with the bounce foretold here a week ago duly taking place around the sot of 1.2978 - 1.2865.

The GBP/USD pair continues to move upwards from the level of 1.2920.

Today, the first support level is currently seen at 1.2865, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.2865, which coincides with the 61.8% Fibonacci retracement level.

This support (1.2865) has rejected our times confirming the veracity of an uptrend. Bias bullish market, above the levels of 1.2865.

According to the previous events, we expect the GBP/USD pair to trade between 1.2865 and 1.3043. So, the support stands at 1.2865, while daily resistance is found at 1.3043.

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.2865. In other words, buy orders are recommended above the spot of 1.2865 /1.2920 with the first target at the level of 1.3003; and continue towards 1.3043.

However, if the GBP/USD pair fails to break through the resistance level of 1.3043 today, the market will decline further to 1.2865 again.

Reason for the trading strategy (fundamentally):

On the downtrend:

If the pair fails to pass through the level of 1.3043, the market will indicate a bearish opportunity below the level of 1.3043. Hence, the market will decline further to 1.2865 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 1.2751.

• The Pound/Dollar since last week, positive trading was overshadowed by hopes of reaching an agreement trade between Britain and the European Union in early October or at least avoid a rough exit.
• Expectation of Trump's case.
• The words of major central banks, Forex is the most important opportunity until October 9, 2020.

Technical levels :

• R3: 1.3335
• R2: 1.3157
• R1: 1.3043
• PP: 1.2865
• S1: 1.2751
• S2: 1.2573
• S3: 1.2459