Technical Market Overview:
Despite the positive momentum behind the recent rally on the GBP/USD pair, the bulls were unable to break through the trendline located around the level of 12570. Moreover, the price fell out of the channel so now is getting closer to the technical support. The market conditions are now overbought, but the momentum is still positive, so if the bulls will make it, then ten the next target is seen at the level of 1.2591 and 1.2641.
Weekly Pivot Points:
WR3 - 12770
WR2 - 1.2670
WR1 - 1.2630
Weekly Pivot - 1.2528
WS1 - 1.2496
WS2 - 1.2396
WS3 - 1.2356
Trading recommendations:
The best strategy for the current market conditions is to follow the larger timeframe trend. The larger time frame trend is still down and there are no signs of any trend reversal. The key long-term technical support is seen at the level of 1.2420 and the key long-term technical resistance is seen at the level of 1.2775 and only if this level is violated, there is a chance for the trend reversal.
