Technical Overview:
The GBP/USD pair has made a minimal breakout above the resistance zone, but the price quickly reversed and made a Bearish Engulfing candlestick pattern. The pair moved lower to test the support at the level of 1.2668 as the market conditions are now overbought. Any violation of this level will lead to an even deeper correction towards the support seen at the level of 1.2605. The larget time frame trend is still down.
Weekly Pivot Points:
WR3 - 1.3080
WR2 - 1.2903
WR1 - 1.2852
Weekly Pivot - 1.2673
WS1 - 1.2612
WS2 - 1.2435
WS3 - 1.2368
Trading Recommendations:
The current move up might the beginning of a larger impulsive breakout, so only the buy orders should be opened. The best strategy for this market is to open the buy orders during the local pull-back or larger corrections. Nevertheless, please notice that the larget time frame trend is down, so all the shorter timeframe moves are being treated as a correction inside of the downtrend.
