Technical Overview:
The GBP/USD pair jas broke out of the consolidation zone located between the levels of 1.2746 - 1.2652 and now is heading lower towards the next technical support seen at the level of 1.2605. Please notice the 61% Fibonacci retracement that is located at the level of 1.2611, just above the support. This is a pretty good zone for the bulls to show their strength, especially that the market conditions are now oversold. The local pull-back is expected from these levels.
Weekly Pivot Points:
WR3 - 1.2870
WR2 - 1.2829
WR1 - 1.2757
Weekly Pivot - 1.2708
WS1 - 1.2629
WS2 - 1.2585
WS1 - 1.2508
Trading Recommendations:
The best strategy for the current market conditions is to buy the corrections in anticipation of the uptrend to resume. This strategy is valid as long as the level of 1.2505 is clearly violated. The larget time frame trend is still down and the recent rally up is the first sign the trend might be reversing. 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.
