FX.co ★ Technical analysis of GBP/USD for February 07, 2020

Overview:

This week, the GBP/USD pair fell from the level of 1.3106 to bottom at 1.2940 yesterday. Today, the GBP/USD pair has faced strong support at the level of 1.2940. So, the strong support has been already faced at the level of 1.2940 and the pair is likely to try to approach it in order to test it again and form a double bottom. Hence, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.2940; to form a bullish channel. According to the previous events, we expect the pair to move between 1.2940 and 1.3106. Also, it should be noted major resistance is seen at 0.3209, while immediate resistance is found at 1.3106. Then, we may anticipate potential testing of 1.3043 to take place soon. Moreover, if the pair succeeds in passing through the level of 1.3043, the market will indicate a bullish opportunity above the level of 1.3043. A breakout of that target will move the pair further upwards to 1.3106 and 0.3209. Buy orders are recommended above the area of 1.3043 with the first target at the level of 1.3106; and continue towards 0.3209. On the other hand, if the GBP/USD pair fails to break out through the resistance level of 1.3106 ; the market will decline further to the level of 1.2900.