Technical Market Outlook:
The GBP/USD pair has been seen consolidating the recent gains in a narrow range located between the levels of 1.1760 - 1.1965. The next target for bulls is located at 161% Fibonacci extension level at 1.2073, this might be a perfect target for wave C as well. The intraday technical support is seen at 1.1760, 1.1734 and 1.1722 and only a clear and sustained breakout below this zone might confirm the sooner than expected termination of the wave C. The strong and positive momentum supports the short term bullish outlook for GBP on the H4 time frame chart.
Weekly Pivot Points:
WR3 - 1.19775
WR2 - 1.19122
WR1 - 1.18732
Weekly Pivot - 1.18469
WS1 - 1.18079
WS2 - 1.17816
WS3 - 1.17163
Trading Outlook:
The bulls are temporary in control of the market and the 38% Fibonacci retracement of the last wave down located at 1.1830 had been tested already as the bulls keep trying to gain move upside ground. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).
