Technical Market Outlook:
The GBP/USD pair has bounced from the new yearly low seen at 1.1802 and has made a new swing high at the level of 1.2198. Currently, the market consolidates the recent gains but soon the bulls might resume the up trend and head towards the upper range level located at 1.2265. The level of 1.2141 that was acting as a technical resistance was violated, so a breakout above this level means termination of the down trend and possible rally higher. The level of 1.2146 remains the key short-term technical support. The market conditions are now extremely overbought, so if there is no breakout higher, the local pull-back is welcome.
Weekly Pivot Points:
WR3 - 1.22774
WR2 - 1.21904
WR1 - 1.21531
Weekly Pivot - 1.21034
WS1 - 1.20661
WS2 - 1.20164
WS3 - 1.19294
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.
