Technical Market Outlook:
The GBP/USD pair has reversed from the local high that was made the level of 1.2271 after the Bearish Engulfing candlestick pattern was made on the H4 time frame chart. The bears broke below the intraday technical support seen at the level of 1.2175 and 1.2156 (now resistance) and made a new swing low at the level of 1.2060 (at the time of writing the analysis). Only a strong and sustained breakout above the level of 1.2271 would change the current situation to more bullish. Please notice, that despite the possible pull-back, the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart.
Weekly Pivot Points:
WR3 - 1.22283
WR2 - 1.22075
WR1 - 1.21985
Weekly Pivot - 1.21867
WS1 - 1.21777
WS2 - 1.21659
WS3 - 1.21451
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 1.1802 would dramatically increase the chances of another leg down towards the level of 1.1494.
