Technical Market Outlook:
The GBP/USD pair has hit the level of 1.4000 and only a sustained breakout above this level would change to short term outlook for Cable to bullish. If the bulls are capped at this level, then the market might continue the down wave towards the lows from July 18th located at the level of 1.3785. Please notice, the momentum is now positive, but not that much strong yet and the market conditions are overbought ahead of Bank of England interest rate decision scheduled for release at 1 PM today.
Weekly Pivot Points:
WR3 - 1.4313
WR2 - 1.4216
WR1 - 1.3972
Weekly Pivot - 1.3876
WS1 - 1.3630
WS2 - 1.3538
WS3 - 1.3276
Trading Recommendations:
The weekly time frame chart still shows, that the up trend is intact.Only a sustained violation of the level of 1.3518 would trigger a bigger down move than a regular pull-back. When the corrective cycle is terminated, the up trend can be continued towards the next long-term target located at the level of 1.4222 (high from 24.02.2021).
