Technical Market Overview:
The GBP/USD pair has bounced significantly from the oversold market conditions after the level of 1.1957 has been hit. The bulls have managed to lift the prices towards the level of 1.2109, but it might not be the end of the correction. The next target for bulls is seen at the level of 1.2135 and then on 1.2157 - 1.2175 zone. The momentum is now at the neutral level, so there is some sort of support for the bulls from this indicator as well, at least for the short-term period. Nevertheless, the larger timeframe trend remains down.
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.
