28.10.202012:42 Forex Analysis & Reviews: Technical analysis of AUD/USD for October 28, 2020

The trend of GBP/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability.

Amid the previous events, the price is still moving between the levels of 0.7158 and 0.7090.

Also, the daily resistance and support are seen at the levels of 0.7158 and 0.7090 respectively.

Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 0.7090 and continued to rise towards the top of 0.7158.

Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7158, the market will indicate a bearish opportunity below the strong resistance level of 0.7158 (the level of 0.7158 coincides with the double top too).

Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. As the price is still below the moving average (100), immediate support is seen at 0.7090, which coincides with a golden ratio (50% of Fibonacci).

Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7158 with the first target at 0.7073. If the trend breaks the support level of 0.7073, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.7022 in order to test the daily support 2 (horizontal green line).

The level of 0.7022 is coincided with the double bottom; for that in case a reversal takes place and the GBP/USD pair breaks through the support level of 0.7022, a further decline to 0.7000 can occur which would indicate a bearish market.

However, if a breakout happens at the resistance level of 0.7158, then this scenario may be invalidated.