Technical Market Outlook
The GBP/USD bulls had been rejected from the supply zone again and market hit the technical support seen at 1.3488. The local low was made at the level of 1.3468 (at the time of writing the article). The bulls keep trying to move higher, because the breakout above the level of 1.3660 opens the road towards the swing high located at 1.3747, however the overbought market conditions and increased bearish activity around this zone indicate a retreat towards the consolidation zone again or breakout lower. The key technical support for the short-term is located at 1.3488, the other important supports are 1.3460, 1.3428 and 1.3410.
Weekly Pivot Points:
WR3 - 1.3817
WR2 - 1.3724
WR1 - 1.3655
Weekly Pivot - 1.3572
WS1 - 1.3510
WS2 - 1.3417
WS3 - 1.3348
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.
