Technical Market Overview:
The GBP/USD pair has been trading inside of a narrow horizontal zone located between the levels of 1.3168 - 1.2962 and currently it is reaching the lower zone levels. The next target for bears is seen at the levels of 1.2988 and 1.2962. If the last support is clearly violated, then the sell-off will continue towards the level of 1.2939. The weak and negative momentum supports the bearish outlook, but the global market participants await the Brexit anyway and the market reaction to this historical event.
Weekly Pivot Points:
WR3 - 1.3380
WR2 - 1.3270
WR1 - 1.3179
Weekly Pivot - 1.3070
WS1 - 1.2967
WS2 - 1.2843
WS3 - 1.2751
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down in the longer term, 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.
