Technical Market Overview:
After the bounce from the technical support located at the level of 1.2786, the GBP/USD is trading again in the middle of the range, around the level of 1.2850. Liquidity is drying up again, but the momentum is still rather weak and just slightly positive despite the oversold conditions, so the next leg will likely be down again. The nearest technical support is seen at the level of 1.2705 and the nearest technical resistance is seen at the level of 1.2939.
Weekly Pivot Points:
WR3 - 1.3033
WR2 - 1.2987
WR1 - 1.2853
Weekly Pivot - 1.2816
WS1 - 1.2681
WS2 - 1.2633
WS3 - 1.2516
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 1.3000 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.
