Technical market overview:
The GBP/USD pair has hit the technical support zone located between the levels of 1.3100 - 1.3108 in oversold market conditions and despite the weak and negative momentum. The bears have full control over the market as the price is still trading below the trendline (marked in orange) and all of the bounces are shallow (less than 85 pips). In this situation, the bears will continue the move down with occasional upward corrections. The fact, that there is no price or candlestick pattern that would indicate the downtrend reversal support the negative short-term outlook for this pair.
Weekly Pivot Points:
WR3 - 1.3631
WR2 - 1.3485
WR1 - 1.3333
Weekly Pivot - 1.3193
WS1 - 1.3047
WS2 - 1.2894
WS3 - 1.2742
Trading Recommendations:
The second target level for sell orders for daytraders has been hit at 1.3100, so now some kind of a local pull-back is expected. Due to the fact that the trend is still down, only sell orders should be opened on the upwards corrections.
