Technical Market Outlook:
The GBP/USD has moved even lower after the overbalance was completed and has recently hit the level of 1.2466. This is the main channel lower line of support and a part of the horizontal technical support located between the levels of 1.2466 - 1.2485. The market conditions are now oversold, so the bulls might risk some bounce from the current levels towards the nearest technical resistance seen at the level of 1.2580. However, the weak and negative momentum support the short-term bearish outlook.
Weekly Pivot Points:
WR3 - 1.3034
WR2 - 1.2910
WR1 - 1.2681
Weekly Pivot - 1.2581
WS1 - 1.2343
WS2 - 1.2226
WS3 - 1.2014
Trading Recommendations:
On the GBP/USD pair the main trend is down, but the local up trend continues. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.
