Technical Market Outlook:
The GBP/USD pair has reversed from the new swing high at the level of 1.2198 after a Pin Bar candlestick pattern was made at the H4 time frame chart. The pull-back reached the 100 and 50 MA at the H4 time frame chart and the small bounce was made as well, but the momentum is neutral already. The level of 1.2135 will now be acting as a technical resistance was violated, and only a sustained breakout above this level means termination of the down trend and possible rally higher. On the other hand, in a case of a further extension to the downside, the next target for bears is seen at the level of 1.1935 and 1.1802 (swing low).
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.
