Technical analysis of GBP/USD for 05/02/2019:
The technical support is broken, more downside is expected
Market technical overview:
The GBP/USD pair has broken below the key technical support zone located between the levels of 1.3042 – 1.3055 and has made a new local low at the level of 1.3025. This low has been also made out of the channel lower line, which means the price has broken below it as well. Currently, the price is testing the trend line from below, but it might reverse again at any time and head towards the levels of 1.3012 and 1.3000.
Weekly Pivot Points:
WR3 – 1.3333
WR2 – 1.3261
WR1 – 1.3158
Weekly Pivot Point – 1.3101
WS1 – 1.2987
WS2 – 1.2928
WS3 – 1.2810
The outlook remains bearish, so only sell orders should be kept open. The first targets seen at the levels of 1.3055 or 1.3042 have been already hit, but if the breakout continues, the sell-off might accelerate to the levels of 1.3012 or 1.3000 before any meaningful bounce occurs.
The material has been provided by InstaForex Company – www.instaforex.com