Technical Market Outlook:
The GBP/USD pair has rebounded from the level of 1.1496 and is trading around the 30 periods moving average seen at 1.1540. The bulls need to extend the bounce towards the 61% Fibonacci extension of the wave A seen at 1.1625 and breakout towards the projected target level located at 1.1717 (supply zone) or higher. The intraday technical support is seen at 1.1496 and 1.1463. The momentum is strong and positive, which supports the short-term bullish outlook for GBP. Only a sudden and strong breakout below the technical support located at 1.1410 would change the imminent outlook to bearish.
Weekly Pivot Points:
WR3 - 1.16573
WR2 - 1.16258
WR1 - 1.16072
Weekly Pivot - 1.15943
WS1 - 1.15757
WS2 - 1.15628
WS3 - 1.15313
Trading Outlook:
Despite the recent upward ABC correction towards the level of 1.1625, 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).
