Technical Market Outlook:
The GBP/USD pair has hit the 61% Fibonacci retracement of the last wave down located at the level of 1.3897. The next target for bulls is seen at the level of 1.3936 and 1.3965. The momentum is strong and positive despite the market conditions entering the overbought levels. Despite the recent bounce, the overall trend is still down and only a sustained breakout above the supply zone located between the levels of 1.3965 - 1.4000 would change to outlook from bearish to bullish.
Weekly Pivot Points:
WR3 - 1.4135
WR2 - 1.4030
WR1 - 1.3924
Weekly Pivot - 1.3820
WS1 - 1.3722
WS2 - 1.3615
WS3 - 1.3519
Trading Recommendations:
The weekly time frame chart still shows, that the up trend is still intact, however, the bears are very close to start a genuine correction. 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).
