Technical Market Outlook:
The GBP/USD pair bounce was capped at 1.2084 and since then the market keeps moving lower. The level of 1.2001 will now act as a technical resistance, together with technical resistance located at the level of 1.2146, just above the 100 MA. The momentum is weak and negative, which supports the short-term bearish outlook for GBP. The technical support seen at the level of 1.1900 had been broken, so the next target for bears is seen at the levels of 1.1763 and 1.1709.
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).
