FX.co ★ Technical Analysis of GBP/USD for August 28, 2020

Technical Market Outlook:

The GBP/USD pair has been seen testing the supply zone located between the levels of 1.3264 - 1.3283 at the end of the week. The momentum is now positive and strong, but the market conditions remain overbought. The zone between the levels of 1.3264 - 1.3077 on GBP/USD pair is now a clear battle zone between bulls and bears, so the winner will determine the next move of GBP. In a case of an upside breakout, the next target is seen at the level of 1.3315.

Weekly Pivot Points:

WR3 - 1.3388

WR2 - 1.3323

WR1 - 1.3185

Weekly Pivot - 1.3117

WS1 - 1.2973

WS2 - 1.2907

WS3 - 1.2796

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. Nevertheless, the recent rally form the multi-year lows seen at the level of 1.1404 has been successful and the trend might be reversing. The key long-term technical resistance is seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518) or accelerate towards the key long-term technical support is seen at the level of 1.1404.