Technical Market Outlook:
The GBP/USD pair has made Double Top price pattern at the weekly high seen at the level of 1.2444 and then reversed sharply below the 100 MA. Currently, the market is trading inside a narrow horizontal zone located between the levels of 1.2106 - 1.2208 as the wave B is developing. The momentum is negative and weak, which supports the short-term bearish outlook for GBP. The intraday technical resistance is seen at the level of 1.2294, which is above the trend line resistance.
Weekly Pivot Points:
WR3 - 1.22750
WR2 - 1.22266
WR1 - 1.22032
Weekly Pivot - 1.21782
WS1 - 1.21548
WS2 - 1.21298
WS3 - 1.20814
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 (1.2760). 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).
