Technical Market Outlook:
After the GBP/USD pair has made a swing high at the level of 1.3950 the market reversed towards the technical support located at the level of 1.3864 and broke below it. The low was made at the level of 1.3828 in the form of a Pin Bar candlestick. The level of 1.3864 will now act as an intraday resistance. Please notice, the market made more than 90 pips move down from 1.3950, so the overbalance had happened already (blue rectangle). The next move down might not be a part of the current up cycle, but a start of a new corrective cycle. The next target for bears is seen at the level of 1.3779.
Weekly Pivot Points:
WR3 - 1.4119
WR2 - 1.3990
WR1 - 1.3939
Weekly Pivot - 1.3805
WS1 - 1.3748
WS2 - 1.3625
WS3 - 1.3558
Trading Recommendations:
The GBP/USD pair keeps developing the up trend and the trigger for this trend was the breakout above the level of 1.3518 on the weekly time frame chart. The recent top was made at the level of 1.3901 and this was the higher close in over two years. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370.
