Technical Market Outlook:
The GBP/USD pair has retraced 38% of the last wave up and bounced again from the level of 1.2375. The 50 % Fibonacci retracement is seen at the level of 1.2346 and the 61% Fibonacci retracement is located at 1.2306. The intraday technical support is seen at 1.2336 and the level of 1.2427 will act as the intraday technical resistance. The next key technical resistance and the target for bulls is seen at the level of 1.2550. 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, so as long as the level of 1.2550 (long-term technical resistance) is not clearly violated, the down trend might be resumed soon.
Weekly Pivot Points:
WR3 - 1.2615
WR2 - 1.2522
WR1 - 1.2374
Weekly Pivot - 1.2281
WS1 - 1.2133
WS2 - 1.2040
WS3 - 1.1892
Trading Outlook:
The weekly time frame chart shows the Bullish Engulfing candlestick pattern was made during the breakout above the level of 1.2340, so the bulls are in charge of the market and they are pushing the price higher. The market already trades above 50 WMA and is heading towards 100 WMA seen at 1.2504. On the other hand, any sustained breakout below the key long term technical support seen at the level of 1.1802 would dramatically increase the chances of another leg down towards the level of 1.1494.
