Technical Market Outlook:
The GBP/USD pair has been moving higher on the H4 time frame chart, despite the fact the bulls got rejected from the level of 1.2546 multiple times. The market still trades below the short-term trend line resistance, so any sustained violation of the short-term support seen at the level of 1.24333 will extend the drop lower towards the level of 1.2393 and 1.2377. The intraday technical resistance is seen at the level of 1.2546 and the intraday technical support is seen at the level of 1.2450. The weak and negative momentum on the H4 time frame chart support the short-term bearish outlook for GBP as the bulls are not that strong to trigger and sustain the rally.
Weekly Pivot Points:
WR3 - 1.26098
WR2 - 1.25569
WR1 - 1.25339
Weekly Pivot - 1.25040
WS1 - 1.24810
WS2 - 1.24511
WS3 - 1.23982
Trading Outlook:
The bulls were rejected at 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. The weekly time frame chart shows the Bearish Engulfing candlestick pattern was made during the breakout attempt above the 1.3163, so now the bears are in charge of the market. Any sustained breakout below the technical support seen at the level of 1.1775 would dramatically increase the chances of another leg down towards the level of 1.1494.
