Technical Market Outlook:
The GBP/USD pair had retraced 50% of the last wave up, hit the level of 1.0918, hit the target zone located between the levels of 1.0918 - 1.0944 and bounced towards the technical resistance located at 1.1410. The target for bulls is seen at the swing high located at 1.1496. The intraday technical support is seen at the level of 1.1224 and the projected target for the wave C of the correction was located at 1.1625. The momentum is strong and positive, which support the short-term bullish outlook for Cable.
Weekly Pivot Points:
WR3 - 1.11884
WR2 - 1.11353
WR1 - 1.11071
Weekly Pivot - 1.10822
WS1 - 1.10540
WS2 - 1.10291
WS3 - 1.09760
Trading Outlook:
The bears are still in charge of Cable and the next long-term target for them is the parity level. The level of 1.0351 has not been tested since 1985, so the down trend is strong, however, the market is extremely oversold on longer time frames already. On the other hand, in order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).
