Technical Market Overview:
The GBP/USD market is continuing the horizontal consolidation in a narrow range as it still does not have enough upward momentum to break through the lower trendline boundary located around the level of 1.2220. The bears have pushed the prices lower again and the technical support at the level of 1.2118 will be tested soon. The lower boundary of the support zone located at the level of 1.2077 is the most important support for the short-term outlook in this pair. The momentum indicator remains weak nad negative, which, despite oversold market conditions, indicates a further possible spike towards the level of 1.1983. The trend is still down and there are no signs of a trend reversal yet.
Weekly Pivot Points:
WR3 - 1.2595
WR2 - 1.2485
WR1 - 1.2298
Weekly Pivot - 1.2184
WS1 - 1.1983
WS2 - 1.1676
WS3 - 1.0876
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.
