Technical Market Outlook:
The GBP/USD pair has bounced from the new yearly low seen at 1.1802 towards the 50 MA on the H4 time frame chart, but bulls are struggling with the bounce continuation ahead of UK GDP data release. The market remains under the bearish pressure (higher time frame trend is down) and the next target for bears is seen at 1.1635. The level of 1.2087 will now act as a technical resistance as well, so a breakout above this level of needed in order to terminate the down trend and rally higher. However, the recent bounce from the level of 1.1802 was very shallow. The level of 1.1914 remains the key short-term technical resistance. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for GBP, nevertheless, the current market conditions are extremely oversold, so a pull-back is on the table.
Weekly Pivot Points:
WR3 - 1.20820
WR2 - 1.20580
WR1 - 1.20444
Weekly Pivot - 1.20340
WS1 - 1.20204
WS2 - 1.20100
WS3 - 1.19860
Trading Outlook:
So far the level of 1.2443 was too strong resistance to break through, so a potential Double Top price pattern is still in play. Moreover, the level of 1.2297 which is 50% Fibonacci retracement level of the last big wave down had been hit, so the bears resumed the down trend. The down trend was confirmed with the level of 1.2089 breakout (50 WMA), so now the potential target for bears is seen at the level of 1.1840 or below.
