Technical Market Outlook:
The GBP/USD pair has broken out form the narrow consolidation zone, but was rejected from the supply zone located between the levels of 1.2791 - 1.2814 and is back into the trading range. The recent momentum breakout into the positive territory on the H4 time frame chart supports the short-term bullish outlook for GBP, however, current momentum is neutral again. Only a strong reversal and a breakout above the local supply zone would change the short-term bearish outlook. Reversal confirmation comes with the level of 1.2826 breakout (100 DMA level). Please notice the price is sitting on the trend line support.
Weekly Pivot Points:
WR3 - 1.27925
WR2 - 1.27651
WR1 - 1.27528
Weekly Pivot - 1.27377
WS1 - 1.27254
WS2 - 1.27103
WS3 - 1.26829
Trading Outlook:
The bulls keep continuing the up trend towards the key technical resistance located at the level of 1.3163 and a breakout above this level is needed to extend the up trend towards the last Weekly swing high seen at 1.4248. Only a sustained breakout blow the technical support seen at the level of 1.1775 would change the outlook to bearish.
