Technical Market Outlook
The GBP/USD pair bounce from the 50% Fibonacci retracement level was very short-lived and currently the market is reversing lower again. The next target for bears is seen at the 61% Fibonacci retracement located at 1.3392. The key technical support is seen at the level of 1.3428 - 1.3410. The momentum is weak and negative, but the market conditions on the H4 time frame chart are bouncing from the extremely oversold conditions, so the test of the nearest technical resistance located at 1.3572 is in view. On the larger time frame charts, like daily and weekly, the up trend is still being continued.
Weekly Pivot Points:
WR3 - 1.3781
WR2 - 1.3725
WR1 - 1.3618
Weekly Pivot - 1.3581
WS1 - 1.3476
WS2 - 1.3437
WS3 - 1.3329
Trading Outlook:
The up trend is being continued, but the up move might be terminated due to the Shooting Star candlestick pattern made at the daily time frame chart at the level of 1.3717. The overall move from the level of 1.3170 looks like a V-shape reversal pattern, so in the long-term the trend might be about to change from the multi-month down trend to the up trend. Please keep an eye on the level of 1.3500, because any sustained breakout below this level will change the outlook back to the bearish again.
