Technical Market Overview:
The GBP/USD rally towards the level of 1.2988 did not last long as the price were capped around this technical resistance level, but the bulls are still trying to continue the up move. The local corrective pull-back seems to be completed and now might be the time to continue the rally. The momentum is now neutral, but due to the market coming off the overbought conditions, the momentum might get negative soon, which will not help the bullish case.
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.
