Technical Market Outlook:
After the overbalance was completed and GBP/USD has moved even lower to hit the level of 1.2466, the bulls decided to enter the market and push the price higher. As a result of their efforts, the price moved towards the 61% Fibonacci retracement located at the level of 1.2674 and is trading around this level in the time of writing the article. The market conditions are now bouncing from the oversold levels, so the bulls might risk another wave up from the current levels towards the nearest technical resistance seen at the level of 1.2747. The immediate technical support is seen at the level of 1.2645.
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.
