Technical Market Outlook:
The GBP/USD pair has made the local low at the level of 1.1900 which is a technical support as well. The level of 1.2106 will now act as a technical resistance for the market and the bulls will now continue to bounce towards this level. The other technical resistance is seen at the level of 1.2146.The momentum had bounce from the extremely oversold conditions and is currently located above the fifty level, so the short-term outlook remains bullish. Down move is possible only if the technical support located at 1.1990 is clearly violated.
Weekly Pivot Points:
WR3 - 1.21447
WR2 - 1.21098
WR1 - 1.20893
Weekly Pivot - 1.20749
WS1 - 1.20544
WS2 - 1.20400
WS3 - 1.20051
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 and the recent move up is still being seen as the upwards correction during the down trend. 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).
