Technical Market Outlook:
The GBP/USD pair has bounced from the level of 1.2367, broke above the 50 and 100 MA level and made a new intraday high at the level of 1.2589 before the pull-back. Despite the extremely overbought market conditions, the bulls are temporary in control of the market and the next target for them is seen at 100% Fibonacci projection level seen at 1.2604. The ultimate target however is located at the swing high seen at 1.2680. Please notice, the intraday technical support is seen at 1.2543 and 1.2533.
Weekly Pivot Points:
WR3 - 1.26076
WR2 - 1.25904
WR1 - 1.25819
Weekly Pivot - 1.25732
WS1 - 1.25647
WS2 - 1.25560
WS3 - 1.25388
Trading Outlook:
A Bearish Engulfing candlestick pattern on the Weekly time frame chart 100 pips away from the 61% Fibonacci retracement located at the level of 1.2778 might indicate the corrective cycle to the upside had been terminated. Any sustained breakout below the technical support at 1.2444 will be the first indication of stronger bearish pressure.
