Technical Market Outlook:
The GBP/USD pair has been seen sitting at the edge of the ascending channel around the level of 1.2150 just before the Bank of England interest rate decision that will take place later on today (01.00 PM) The recent 4.5% bounce had been terminated with a Bearish Engulfing candlestick pattern and currently the market is in a pull-back mode. As long as the market trades inside the ascending channel, the bulls are ready move away from the broken trend line and hit the next target seen at the level of 1.2388. Any breakout below the technical support seen at 1.2090 and 1.2062 is bearish. The momentum is weak and negative during the pull-back, so please keep an eye on the technical support for a potential reversal and up move continuation.
Weekly Pivot Points:
WR3 - 1.2252
WR2 - 1.2216
WR1 - 1.2199
Weekly Pivot - 1.2181
WS1 - 1.2164
WS2 - 1.2145
WS3 - 1.2109
Trading Outlook:
The Cable is way below 100 and 200 DMA , so the bearish domination is clear and there is no indication of down trend termination or reversal. The bulls are now trying to start the corrective cycle after a big Bullish Engulfing candlestick pattern was made on the weekly time frame chart, however there is no visible progress here yet. The next long term target for bears is seen at the level of 1.1410. Please remember: trend is your friend.
