Technical Market Overview:
The GBP/USD pair has managed to hit the third technical resistance level located at 1.2988, but despite the all bullishness the market is still inside of the range and below the key resistance. The momentum behind the bounce is strong and positive, but the market conditions are starting to become overbought, so the bounce continuation above the resistance might be hard. The next technical resistances are located at the levels of 1.2988 and 1.3012.
Weekly Pivot Points:
WR3 - 1.3108
WR2 - 1.3004
WR1 - 1.2968
Weekly Pivot - 1.2874
WS1 - 1.2826
WS2 - 1.2727
WS3 - 1.2680
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 1.3012 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.
