Technical Market Outlook:
The GBP/USD pair has made a new swing high seen at 1.2545 and is currently developing the corrective cycle. This cycle might be in form of the ABC pattern, where wave B might be a Rising Wedge or a Triangle pattern. The intraday technical support is seen at the level of 1.2343 and the intraday technical resistance is seen at 1.2473. The momentum on H4 time frame chart is weak and negative, so the corrective cycle might be continued lower when the potential Wedge pattern is done. When the overall corrective cycle is completed, the next target for bulls is seen at 61% Fibonacci retracement located at the level of 1.2778. The key short-term technical support is seen at 1.2269.
Weekly Pivot Points:
WR3 - 1.24659
WR2 - 1.24340
WR1 - 1.24215
Weekly Pivot - 1.24021
WS1 - 1.23896
WS2 - 1.23702
WS3 - 1.23383
Trading Outlook:
Pound continues the corrective cycle to the upside and on the Weekly time frame chart the price is about to hit the 61% Fibonacci retracement located at the level of 1.2778. When this level is hit, the high volatility is expected, so please stay focused as the bears will defend this level strongly.
