Technical Market Overview:
The GBP/USD pair has broken above the short-term trendline dynamic resistance around the level of 1.2525, made a local high at the level of 1.2556 and then quickly reversed down towards the technical support at the level of 1.2480. It looks like a false breakout as the bulls are clearly not strong enough to continue the breakout higher: the momentum indicator is back to the neutral level of fifty. Any violation of the level of 1.2480 will open the road towards the next technical support at the level of 1.2432. The downtrend continues.
Weekly Pivot Points:
WR3 - 1.2789
WR2 - 1.2679
WR1 - 1.2588
Weekly Pivot - 1.2485
WS1 - 1.2394
WS2 - 1.2201
WS3 - 1.1089
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.
