Technical Market Outlook
The GBP/USD pair has broken through the 61% Fibonacci retracement located at 1.3392 and new low was made at 1.3364. The key technical support is seen at the level of 1.3352. This is the key short-term technical support level for bulls and if there is no strong response from them, then the lower level will be hit (1.3370 and 1.3352). The momentum is weak and negative and the market conditions on the H4 time frame chart are still hovering around the extremely oversold conditions. On the larger time frame charts, like daily and weekly, the up trend is still being continued, however the momentum is not that strong anymore.
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.
