Technical Market Overview:
The GBP/USD pair has violated the support and the new local low was made at the level of 1.2381 in oversold market conditions. This is also a new swing low at the higher time frame charts, so the breakout is very important as the downtrend continues. The next long-term technical support is seen at the level of 1.1983. The price is trying to bounce higher and currently is testing the level of 1.2439. If the bounce will be strong enough, there is a chance for an up move towards the level of 1.2480.
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 at the level of 1.2420 has been violated and the next target for bears is seen at the level of 1.1983.
