Technical Market Outlook
The GBP/USD pair has made a new swing low at the level of 1.3357, which is just below the 61% Fibonacci retracement seen at 1.3392. Currently, the bulls are trying to bounce higher towards the level of 1.3428 and 1.3459 in order to resume the up trend. The level of 1.3357 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 (1.3295 and 1.3277). 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 - 1.3701
WR2 - 1.3601
WR1 - 1.3492
Weekly Pivot - 1.3428
WS1 - 1.3289
WS2 - 1.3215
WS3 - 1.3085
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.
