Technical Market Overview:
The GBP/USD pair has moved lower through the level of 1.2783, which was the key short-term technical support and due to the time limitations, the Bullish Flag pattern has been invalidated. The market is now trying to bounce from the technical support, but it is worth to notice, that the support was slightly broken as the local low was made at the level of 1.2769. The momentum is still weak and negative despite the oversold conditions, so the next leg will likely be down again. The nearest technical support is seen at the level of 1.2705.
Weekly Pivot Points:
WR3 - 1.3033
WR2 - 1.2987
WR1 - 1.2853
Weekly Pivot - 1.2816
WS1 - 1.2681
WS2 - 1.2633
WS3 - 1.2516
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.
