Technical Market Outlook:
The GBP/USD pair has been rejected from the swing high located at 1.2846 and hit the technical support located at the level of 1.2698. The local low was made a few pips lower at 1.2684 ad will act as the intrday technical support. The 50 MA will provide the dynamic resistance for bulls around the level of 1.2790 when the up trend is resumed. The weak and negative momentum on the H4 time frame chart support short-term bearish outlook for GBP. The pull-back might evolve into a full-blown correction if the level of 1.2684 is broken.
Weekly Pivot Points:
WR3 - 1.27656
WR2 - 1.27471
WR1 - 1.27367
Weekly Pivot - 1.27286
WS1 - 1.27182
WS2 - 1.27101
WS3 - 1.26916
Trading Outlook:
The 61% Fibonacci retracement located at the level of 1.2778 has been hit, but it does not indicate the corrective cycle to the upside had been terminated. Any sustained breakout above this level and a weekly candle close above it is needed to change the long-term outlook to bullish. The key long term level of technical support is seen at 1.2444. The next long-term target for bulls is seen at the level of 1.3160.
