The GBP/USD pair has hit the technical support located at the level of 1.2308, which is close to the 50% Fibonacci retracement of the last wave up located on 1.2268. The short-term outlook is still positive for bulls as this move down still looks corrective and there are no signs of any trend reversal yet. The larger timeframe trend remains down as well, so if the level of 1.2195 (61% Fibonacci retracement) is violated significantly, then the larger timeframe trend might resume sooner than expected.
Weekly Pivot Points:
WR3 - 1.2753
WR2 - 1.2662
WR1 - 1.2561
Weekly Pivot - 1.2479
WS1 - 1.2378
WS2 - 1.2291
WS3 - 1.2188
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 1.2505 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues towards the level of 1.2000 and below.
