Technical Market Overview:
The GBP/USD pair has made another lower low at the level of 1.2559 as the downtrend continues. After the low was made, the price bounced and the Bullish Engulfing candlestick pattern was made, which might indicate a stronger bounce this time. Nevertheless, to move higher, the bulls will have to break through the technical resistance located at the levels of 1.2647 and 1.2683 before the price will hit the main technical resistance level of 1.2755. Another failure to move higher will make the bears even stronger, so more downwards price action would be expected then.
Weekly Pivot Points:
WR3 - 1.2903
WR2 - 1.2819
WR1 - 1.2711
Weekly Pivot - 1.2636
WS1 - 1.2534
WS2 - 1.2447
WS3 - 1.2331
Trading Recommendations:
The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.
