Technical Overview:
Not much has changed on the GBP/USD pair as the volatility is drying up after Cable made a false breakout from the Flag pattern and made a new local high at the level of 1.2974. Nevertheless, after a few tryouts, the bulls were not strong enough to push the prices higher towards the key technical resistance level at 1.3012 and reversed. The price moved back down towards the Flag pattern zone again and currently is trading inside of this zone, just in the middle of it. The next important technical support is seen at the level of 1.2783, which is the lower boundary of the Flag pattern.
Weekly Pivot Points:
WR3 - 1.3169
WR2 - 1.3078
WR1 - 1.3005
Weekly Pivot - 1.2910
WS1 - 1.2842
WS2 - 1.2734
WS3 - 1.2668
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 1.3000 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509. As long as the price is trading below this level, the downtrend continues towards the level of 1.1957 and below.
