Technical Market Overview:
The GBP/USD pair has reversed down after hitting the level of 1.2308 which is located just below the 61% Fibonacci retracement at 1.2324. The Broadening Wedge price pattern might have been completed then because the price has broken below the technical support at the level of 1.2248 and 1.2175. 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 1.2156 in overbought market conditions.
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.
