Technical Market Overview:
The GBP/USD pair has broken below the local support at the level of 1.2381 and made a new local low at the level of 1.1261 at the time of writing. The inability of bulls to bounce more than to the level of the nearest technical resistance is a clear example of a strong bear market in which sellers have control over the price. The momentum indicator remains weak nad negative, which indicated a further possible spike towards the level of 1.2100. The trend is still down and there are no signs of a trend reversal yet.
Weekly Pivot Points:
WR3 - 1.2594
WR2- 1.2550
WR1 - 1.2446
Weekly Pivot - 1.2406
WS1 - 1.2296
WS2 - 1.2257
WS3 - 1.2154
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 1.2100 and 1.1983. All the corrections are just the local correction inside of a downtrend.
