Technical Market Outlook:
The GBP/USD pair has been seen continuing the bounce from the level of 1.1410 (7 years low) as the momentum is strong and positive on the H4 time frame chart. The US Dollar is in the pull-back mode, which helps the bulls to continue the up move. The local supply zone located between the levels of 1.1598 - 1.1622 had been broken, so the next target for bulls is seen at the level of 1.1717 and 1.1760. Those levels are just under the trend line resistance as well, so needs to be broken, because the larger time frame trend (daily and weekly) remains down until further notice. The levels of 1.1598 and 1.1622 will now act as the intraday technical support.
Weekly Pivot Points:
WR3 - 1.16716
WR2 - 1.16430
WR1 - 1.16286
Weekly Pivot - 1.16144
WS1 - 1.16000
WS2 - 1.15858
WS3 - 1.15572
Trading Outlook:
The bulls has failed big time to continue the corrective cycle after a big Bearish Engulfing candlestick pattern was made on the weekly time frame. The bears tested the level of 1.1410 (2020 swing low) and now the market is in the pull back mode. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).
