Technical Market Overview:
The GBP/USD pair has rallied towards the level of 1.2308 and broke above it eventually. The new high was made at the level of 1.2353 in overbought market conditions. Since then, the price has fallen out the channel and is trading below the recent high at 1.2308. The next target for bears, if they will continue the pull-back is seen at the level of 1.2224 or even at the level of 1.2175. The larget timeframe trend remains down.
Weekly Pivot Points:
WR3 - 1.2838
WR2 - 1.2600
WR1 - 1.2467
Weekly Pivot - 1.2210
WS1 - 1.2063
WS2 - 1.1816
WS3 - 1.1679
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.
