Technical Market Outlook:
The GBP/USD pair has bounced significantly towards the upper channel line and is testing this line now. The Doji candlestick pattern located at the top of the rally has not scared the bulls and they are still trying to break out higher on the short-term time frames. The next target for bulls is 50% Fibonacci retracement located at 1.3660. The nearest technical support is seen at 1.3519. The key short-term technical support located at the level of 1.3516 had been violated as well, but no weekly or monthly candle close occurred yet. Any violation of this level would likely deepen the down move towards the level of 1.3000 or below.
Weekly Pivot Points:
WR3 - 1.4014
WR2 - 1.3865
WR1 - 1.3697
Weekly Pivot - 1.3546
WS1 - 1.3375
WS2 - 1.3218
WS3 - 1.3052
Trading Outlook:
The weekly and monthly time frame chart show a breakout below the key technical support located at 1.3516, so now the bears are in total control of the market. The next target for bears is seen at the level of 1.3174. The levels of 1.3408 and 1.3371 might give some support for bulls as they are 55 and 200 weekly moving average levels.
