Technical Market Outlook:
The GBP/USD pair has made a new swing high at the level of 1.3141 (at the time of writing the analysis) and bulls keeps pushing higher. The next target for bulls is seen at the level of 1.3163, which is the key long term technical resistance on the Weekly time frame chart. The old swing high will now act as an key short-term technical support located at the level of 1.2848. The momentum is strong and positive, however, the extremely overbought market conditions were hit on the H4,Daily and Weekly time frame chart, so a pull-back towards the support is on the table. Only a sustained breakout below the moving average dynamic support around 1.2693 would change the outlook to more negative.
Weekly Pivot Points:
WR3 - 1.28816
WR2 - 1.28510
WR1 - 1.28325
Weekly Pivot - 1.28204
WS1 - 1.28019
WS2 - 1.27898
WS3 - 1.27592
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.
