Technical Market Outlook
Despite the oversold market conditions, the GBP/USD pair has been seen approaching the key short-term technical support located at the level of 1.3275. The momentum is weak and negative, so if the technical support is violated, then the sell-off might extend towards the level of 1.3240, 1.3194 or even 1.3166. On the other hand, the next target for bulls is seen at 1.3457 (50% Fibonacci retracement), 1.3500 (61% Fibonacci retracement), but is the level of 1.3275 is broken, a new local low is made then and the targets for bulls would be invalidated.
Weekly Pivot Points:
WR3 - 1.3901
WR2 - 1.3765
WR1 - 1.3529
Weekly Pivot - 1.3404
WS1 - 1.3174
WS2 - 1.3022
WS3 - 1.2799
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.
