Technical Market Overview:
The GBP/USD pair has finally resolved the Broadening Wedge pattern and made a clear and visible breakout below the lower line of the pattern. The most recent local low was made at the level of 1.2024, which is only 12 pips away from the key short-term technical support. Weak and negative momentum supports the short-term negative outlook for this pair and the support at 1.2012 will be tested soon.
Weekly Pivot Points:
WR3 - 1.2411
WR2 - 1.2356
WR1 - 1.2237
Weekly Pivot Point - 1.2187
WS1 - 1.2067
WS2 - 1.2021
WS3 - 1.1902
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 towards the level of 1.2000 and below.
