Technical Market Outlook:
The GBP/USD pair has made another swing high at the level of 1.2732 as the bulls keep moving higher. In a case of a breakout above the recent high, the next target for bulls is swing high seen at the level of 1.2745, which is the key long-term technical resistance level. The strong and positive momentum on the H4 time frame chart support the bullish outlook for GBP in the short-term, but the current market conditions on that time frame are extremely overbought. The key technical support is still seen at the level of 1.2373 and only a sustained breakout below this level would change the outlook to more bearish.
Weekly Pivot Points:
WR3 - 1.2833
WR2 - 1.2724
WR1 - 1.2664
Weekly Pivot - 1.2555
WS1 - 1.2495
WS2 - 1.2386
WS3 - 1.2326
Trading Outlook:
The weekly time frame chart reveals a decisive Bullish Engulfing candlestick pattern materializing amid the breakout beyond the 1.2340 level, signaling the dominance of bullish sentiment as prices continue to climb. Currently, the market is trading above the 50-week moving average (WMA) and is on course towards the 100 WMA positioned at 1.2504. Conversely, a sustained breakout below the critical long-term technical support at 1.1802 significantly heightens the probability of a substantial downward movement, potentially targeting the level of 1.1494.
