Technical Market Outlook:
The GBP/USD pair recently marked a local low at 1.2602 following a pullback from its swing high of 1.2732. Today's primary focus for bulls revolves around the intraday technical resistance at 1.2663, making it a crucial level to monitor. Despite the momentum hovering around fifty, a potential downside breakout could extend the move, targeting the 1.2573 level for testing. It's worth noting that the key technical support remains steadfast at 1.2373, and only a sustained breakout below this level would shift the outlook to a more bearish stance. Traders are advised to keep a close eye on these levels for potential market movements.
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.
