Technical Market Outlook
The Double Top price pattern made at 1.3832 on GBP/USD pair is still capping any bullish attempts to rally higher. The volatility is decreasing as the market participants await a fundamental trigger to violate one of the key levels. Moreover, the extremely overbought market conditions might cause a local pull-back towards the level of 1.3776, 1.3692 or 1.3679 during the down move. Only a sustained breakout below the technical support seen at 1.3647 would change the temporary outlook to more bearish.
Weekly Pivot Points:
WR3 - 1.4044
WR2 - 1.3902
WR1 - 1.3852
Weekly Pivot - 1.3708
WS1 - 1.3629
WS2 - 1.3498
WS3 - 1.3441
Trading Outlook:
The levels of 1.3408 and 1.3371 might gave good support for bulls as they are 55 and 200 weekly moving average levels, so the market had bounced significantly towards the level of 1.3750 again. Nevertheless, this move up still looks pretty much corrective in nature, so only a sustained breakout above the level of 1.4000 would change the outlook to more bullish with a target at 1.4200.
