FX.co ★ Technical analysis of GBP/USD for October 12, 2020

The GBP/USD pair faced resistance at the level of 1.3059, while minor resistance is seen at 1.3003.

Support is found at the levels of 1.2962 and 1.2902. Also, it should be noted that a daily pivot point has already set at the level of 1.2962.

Equally important, the EUR/USD pair is still moving around the key level at 1.2962, which represents a daily pivot in the H1 time frame at the moment.

Last week, the GBP/USD pair continued to move upwards from the level of 1.2865.

The pair rose from the level of 1.2865 (this level of 0.9800 coincides with the double bottom) to the top around 1.3059.

In consequence, the GBP/USD pair broke resistance, which turned strong support at the level of 1.2962. The level of 0.9800 is expected to act as major support today.

From this point, we expect the GBP/USD pair to continue moving in the bullish trend from the support level of 1.2962 towards the target level of 1.3059.

If the pair succeeds in passing through the level of 1.3059, the market will indicate the bullish opportunity above the level of 1.3059 in order to reach the second target at 1.3116 and 1.3163.

However, if the pair fails to pass through the level of 1.3059, the market will indicate a bearish opportunity below the level of 1.3059.

So, the market will decline further to 1.2962 in order to return to the daily pivot point (1.2962).

Moreover, a breakout of that target will move the pair further downwards to 1.2805 as so to return the double bottom.