Technical Market Overview:
The GBP/USD pair has made another corrective wave down towards the level of 1.2381 and broke below it. The local low was made at the level of 1.2345 (38% Fibonacci retracement), which is below the technical support at the level of 1.2353. The next target for bears is the next technical support located at the level of 1.2308, which is close to the 50% Fibonacci retracement of the last wave up. The short-term outlook is still positive for bulls as this move down still looks corrective. The larger timeframe trend remains down.
Weekly Pivot Points:
WR3 - 1.2753
WR2 - 1.2662
WR1 - 1.2561
Weekly Pivot - 1.2479
WS1 - 1.2378
WS2 - 1.2291
WS3 - 1.2188
Trading recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2505 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues towards the level of 1.2000 and below.
