Technical Market Outlook:
The GBP/USD pair has hit the monthly trend line resistance located around the level of 1.1988 which is a key technical resistance level as well. The bulls did not manage to break through yet and it means the downtrend is not over yet as the bearish pressure is still visible. Please notice the market conditions on the H4 time frame chart are now becoming overbought and weak and neutral momentum pointing to the south. The larger time frame downtrend continues, but if bull will not break through the level of 1.1988, then there might not be the relief rally on Cable. All we need is the momentum to pick up above the neutral level.
Weekly Pivot Points:
WR3 - 1.3144
WR2 - 1.2765
WR1 - 1.2140
Weekly Pivot - 1.1761
WS1 - 1.1090
WS2 - 1.0741
WS3 - 1.0112
Trading Recommendations:
The downtrend will likely be continued towards the parity level. All upward moves will be treated as local corrections in the downtrend until the level of 1.1983 is clearly violated. The long-term target for bears is seen at the level of 1.000 and the long-term target for bulls is a new high above the level of 1.1983.
