Technical Market Overview:
The GBP/USD pair bounce did not last long as the bearish pressure intensified around the level of 1.3068 and some kind of Bearish Engulfing pattern has been made. Nevertheless, the market is still range bounded and only a sustained breakout through the level of 1.3512 would resume the uptrend on the larger timeframe. On the other hand, the key level for bears is seen at the level of 1.2904 and if violated, then the breakout from the consolidation zone is valid. The current market conditions are neutral, lightly skewed towards downward breakout through the support.
Weekly Pivot Points:
WR3 - 1.3548
WR2 - 1.3373
WR1 - 1.3306
Weekly Pivot - 1.3131
WS1 - 1.3071
WS2 - 1.2899
WS3 - 1.2839
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 1.3512.
