Technical Market Outlook:
The GBP/USD pair has made the new weekly high and a new swing high at the level of 1.2444. The market double checked this level (possible Double Top pattern) and then reversed below the local trend line support. The next target for bears is seen at 1.2106 (7th December low). The momentum is negative and weak, which supports the short-term bearish outlook for GBP. The intraday technical resistnace is seen at the level of 1.2294, which is above the trend line resistance.
Weekly Pivot Points:
WR3 - 1.22823
WR2 - 1.22537
WR1 - 1.22388
Weekly Pivot - 1.22251
WS1 - 1.22102
WS2 - 1.21965
WS3 - 1.21679
Trading Outlook:
The bulls are temporary in control of the market and the 50% Fibonacci retracement of the last big wave down located at 1.2293 had been broken, so the next target is 61% Fibonacci retracement level. 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 close the weekly candle above the level of 1.2275 (swing high from August 10th).
