Technical Market Outlook:
The GBP/USD pair has broken below the technical support located at 1.1410 (will act as an intraday technical resistance) and extends the down move back into the Traingle pattern territory. The next target for bears is seen at the level of 1.1062. The bulls need to extend the recent 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 momentum has hit the extremely oversold conditions on the H4 time frame chart, so a bounce to test the level of 1.1410 from below is possible, but the overall short-term outlook remains 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).
