Technical Market Overview:
The GBP/USD pair has been capped at the 61% Fibonacci retracement located at the level of 1.3280 and reversed towards the technical support at the level of 1.3121. This level has been violated as well and the price made a new local low at the level of 1.3101 which is inside the old descending channel zone. The next target for bears is seen at the level of 1.3017 or 1.2988 because the market is still coming off the overbought conditions. The momentum is right at its fifty levels, but points to the downside. The larger timeframe trend still remains up.
Weekly Pivot Points:
WR3 - 1.3395
WR2 - 1.3256
WR1 - 1.3182
Weekly Pivot Point - 1.3041
WS1 - 1.2971
WS2 - 1.2819
WS3 - 1.2756
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 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.
