Technical Market Outlook
The GBP/USD pair has made the local high was at the level of 1.3626 before the bounce was capped and the Pin Bar candlestick pattern occurred at the top of the up wave. Currently, the market is consolidating around the level of 1.3560 as the volatility has decreased. The breakout above the short-term trend line resistance is a positive signal of the bullish strength, so after the test of the trend line (around the level of 1.3475) the up move might be continued. If the bears push down harder below the trend line support, the next target is seen at the level of 1.3460 and 1.3428.
Weekly Pivot Points:
WR3 - 1.3889
WR2 - 1.3758
WR1 - 1.3647
Weekly Pivot - 1.3514
WS1 - 1.3404
WS2 - 1.3278
WS3 - 1.3169
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.
