Technical Market Outlook:
The GBP/USD pair has been having trouble to move out of the channel as the local high was made at the level of 1.3182 and since then the market keeps trading inside of the descending channel. The bears recently hit the level of 1.3044, which is only 44 pips away from the swing low. Moreover, the bears are testing the technical support at 1.3049 for the second time (this is the March 2022 low). The market conditions on the H4 time frame chart are bouncing from the oversold levels, however, the momentum remains weak and negative, so another wave down is still on the table. The intraday technical support located at 1.3049 might not be enough to stop the bearish pressure as the next target for bears is seen at the level of 1.3000 and below. Only a sustained breakout above the level of 1.3182 would change the outlook to more bullish.
Weekly Pivot Points:
WR3 - 1.3305
WR2 - 1.3243
WR1 - 1.3171
Weekly Pivot - 1.3106
WS1 - 1.3038
WS2 - 1.2973
WS3 - 1.2901
Trading Outlook:
If the market will break below the level of 1.3000, the up trend on the weekly time frame would be terminated and the bears enforce and confirm their control over the market in the long term. The Cable is below 100 and 200 WMA already, so the bearish domination is clear. The next long term target for bears is seen at the level of 1.2751 and 1.2663. Please remember: trend is your friend.
