Technical Market Overview:
The GBP/USD pair has made a marginally higher high at the level of 1.3012 and is still trading above the short-term ascending trendline. Please notice, that the recent higher high was made after the big Pin Bar candlestick pattern was made last week in overbought market conditions and the global investors can see a negative divergence between the price and the momentum as indicated by the RSI. Any violation of the level of 1.2865 will likely lead to another leg down to the level of 1.2783 again and even a slide towards the level of 1.2705. The key technical support is still located at the level of 1.2561. The larger timeframe trend remains bearish.
Weekly Pivot Points:
WR3 - 1.3651
WR2 - 1.3325
WR1 - 1.3193
Weekly Pivot - 1.2842
WS1 - 1.2723
WS2 - 1.2355
WS3 - 1.2252
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 1.2999 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509. As long as the price is trading below this level, the downtrend continues towards the level of 1.1957 and below.
