Technical analysis of GBP/USD for October 2, 2020

Overview :

The daily pivot point of GBP/USD pair is set at the point of 1.2861 which coincides with the ratio of 61.8% Fibonacci retracement levels on the one-hour chart.

Resistance turned support at 1.2790 as intraday bias in the GBP/USD pair remains bullish market for the moment.

The buying momentum is still present on the RSI's indicator, which has been going on for nearly a week.

Currently, attempts are being made to breach the upper resistance area between the prices of 1.2920 - 1.2980.

Above this area completely, and therefore in the case of a day's candle closing above this price 1.2920 in the H1 time frame. It will be a perfect signal to continue the rise in the coming hours towards the level of 1.2980 so as to try break through successfully.

Of course without breaching the top of 1.2978, the scenario of a return to the decline will remain.

Today, we guess that the pair will be traded higher in the early session and try to reach the first resistance at the level of 1.2978.

The bias is bullish in the nearest term probably with a little bullish bias testing 1.2978 spot which needs to be clearly broken to the upside to keep the bullish scenario strong.

Currently uptrend should end around 1.2978 - 1.3070 zone. A correction down to below 1.2790 is expected. A rise above 1.2790 will miscarry the expected correction.

A clear break above that spot (1.2978) could lead the price to the upsides zone in the nearest term testing 1.3070. Thus, we confirm the bullish scenario.

The key level is 1.2790 for today. So, according to the previous events the price is expected to remain between 1.2790 and 1.3070 levels.

Buy-deals are recommended above 1.2790 with the first target seen at 1.2978. The movement is likely to resume to the point 1.3010 and further to the point 1.3070.

On the downside, break of 1.2790 will extend the fall from 1.2978 short term top to 23.6% Fibonacci retracement of 1.2746 to 1.2703 at 1.2674 instead.

Trading tips :

The GBP/USD pair climbed from the level of 1.2790 to 1.2978, then it rebounded to close at the 1.2890 price. The strong resistance will be formed at 1.2978. The market is still indicating a strong bullish trend from the area of 1.2790 - 1.2750.

Daily technical levels:

Resistance 3: 1.3166 Resistance 2: 1.3070 Resistance 1: 1.2978 Pivot: 1.2861 Support 1: 1.2790 Support 2: 1.2674 Support 3: 1.2595