Technical Market Outlook
The GBP/USD pair has tested the supply zone located between the levels of 1.3896 - 1.3874 and reversed lower towards the technical support seen at 1.3832. This level was violated and a new low was made at the level of 1.3817. The supply zone is the key zone for bears, so if the bulls will break higher, then the next target is seen at the level of 1.3965. The momentum is strong and positive despite the extremely overbought market conditions at the H4 time frame. The daily time frame chart shows the price trading above 200 and 50 DMA (around the level of 1.3800), so this level might provide additional support for bulls.
Weekly Pivot Points:
WR3 - 1.4098
WR2 - 1.3994
WR1 - 1.3935
Weekly Pivot - 1.3824
WS1 - 1.3775
WS2 - 1.3669
WS3 - 1.3816
Trading Outlook:
The weekly time frame chart still shows, that the up trend is still intact and the corrective wave had terminated at the level of 1.3571. Only a sustained violation of the level of 1.3518 would trigger a bigger down move than a regular pull-back. The up trend can be continued towards the next long-term target located at the level of 1.4246 (high from 24.02.2021).
