Technical Overview:
The GBP/USD pair has been trading inside of a narrow horizontal range located between two levels of 1.2559 - 1.2605 and is trying to bounce, but so far no avail as the downtrend is still in force. The key support is seen at the level of 1.2505 and if this level is violated the downtrend will accelerate. On the other hand, the nearest technical resistance is seen at the level of 1.2605.
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.
