Technical Overview:
The GBP/USD pair has moved lower overnight and is currently trading around the level of 1.2800, as anticipated. The next important technical support is seen at the level of 1.2783, which is the lower boundary of the Flag pattern and the price might get there very soon because of the negative and weak momentum. Please watch carefully the price action around the level of 1.2783, because any violation of this level will likely invalidate the Bullish 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.
