Technical Market Overview:
The GBP/USD pair has bounced finally from the level of 1.2866 and is trading inside the supply zone located between the levels of 1.2938 - 1.2960. This is an important technical resistance zone and any breakout through this zone would extend the rally towards the level of 1.2977, 1.2996 or 1.3012. The positive momentum and a bounce from the extremely oversold market conditions are so far helping the bulls, but the conditions might change very quickly and the downtrend will continue.
Weekly Pivots:
WR3 - 1.3137
WR2 - 1.3074
WR1 - 1.2986
Weekly Pivot: 1.2980
WS1 - 1.2827
WS2 - 1.2766
WS3 - 1.2683
Trading recommendations:
The zone between 1.2938 - 2.2960 is the key technical resistance zone for the pice, so it is a good level to open the sell orders. If, however, the resistance is violated, then the corrective pull-back will extend higher and the sell orders should be closed and short-term buy orders should be open with a target at the level of 1.2977, 1.2996 or 1.3012. The larger timeframe outlook is now neutral.
