Technical Market Outlook:
The GBP/USD pair has been seen developing a potential Triangle price pattern at the H4 time frame chart as the bulls are getting ready for a breakout. The reason for a breakout to the upside is that there is still wave C waiting to develop to the upside as the ABC corrective cycle hasn't been completed yet. On the other hand, any breakout below the level of 1.0923 will invalidate the ABC corrective cycle scenario. The momentum is strong and positive, so after the wave E of the ABCDE Triangle pattern is done, the odds for a breakout are high. The first target for bulls is seen at the level of 1.1625 (61% Fibonacci projection of the wave A).
Weekly Pivot Points:
WR3 - 1.15209
WR2 - 1.14338
WR1 - 1.13938
Weekly Pivot - 1.13467
WS1 - 1.13067
WS2 - 1.12596
WS3 - 1.11725
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. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).
