Technical Market Overview:
The GBP/USD pair has made another marginal higher highs at the level of 1.2307 during the corrective pull-back. The Broadening Wedge price pattern is getting expanded and the target for bulls is seen at the level of 1.2381. This is the short-term key resistance level and if violated, the correction might evolve into more trending move higher. Nevertheless, the whole move up is still a part of the correction, because it does not look like the beginning of a new, impulsive trend. The pair is currently testing the nearest technical support located at the level of 1.2265 in overbought market conditions. The next support is seen at the level of 1.2324, which is a 61% Fibonacci retracement.
Weekly Pivot Points:
WR3 - 1.2616
WR2 - 1.2455
WR1 - 1.2395
Weekly Pivot Pont - 1.2226
WS1 - 1.2161
WS2 - 1.2001
WS3 - 1.1935
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. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues.
