Technical Market Overview:
The GBP/USD pair has broken out of the narrow consolidation zone to the downside and made a local low at the level of 1.2014. So far no new local low was made and the price bounced higher as the bulls are trying to defend the support. The Bears have managed to push the price towards the key long-term technical support located at the level of 1.1988 and this level is very important. The bulls might defend the support, but if the level is clearly violated without a fight, then the price will extend the drop much lower, so there must be some bullish reaction on this level, otherwise, the damage will be even worse.
Weekly Pivot Points:
WR3 - 1.2303
WR2 - 1.2249
WR1 - 1.2110
Weekly Pivot - 1.2066
WS1 - 1.1921
WS2 - 1.1875
WS3 - 1.1728
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. Please keep an eye on the key technical support located at the level of 1.1988, some kind of bounce might be expected after this level is hit.
