Technical Market Outlook:
The GBP/USD pair had made a new local low at the level of 1.2090, then bounced back again to the narrow zone located between the levels of 1.2121 - 1.2224: the bulls managed to pull-back, but the market is again testing the 50 MA levels around 1.2146. The intraday technical support is still located at the level of 1.2036 and the intraday technical resistance is located at 1.2121. Please notice, that the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart. The weak and negative momentum on the H4 time frame chart supports the bearish outlook.
Weekly Pivot Points:
WR3 - 1.21969
WR2 - 1.21748
WR1 - 1.21618
Weekly Pivot - 1.21527
WS1 - 1.21397
WS2 - 1.21306
WS3 - 1.21085
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.
