Technical Market Outlook
The GBP/USD pair has broken above the short-term trend line resistance and made a new local high at the level of 1.3572. If this level is broken, then the next target is seen at 61% Fibonacci retracement at 1.3598. The momentum is strong and positive and the market conditions on the H4 time frame chart favor the bulls. 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. As long as the market trades above the level of 1.3357, which is the key short-term technical support level for bulls, the odds for the test of the swing high at 1.3747 are high.
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.
