Technical Market Overview:
The GBP/USD rally did not last long and the pair reversed after hitting the level of 1.2988. The next technical resistances located at the levels of 1.2988 and 1.3012 were never tested and Cable is back to the narrow trading range again. The immediate support is seen at the level of 1.2897, but the key technical support is located at the level of 1.2786 - 1.2765. The momentum is now neutral, but due to the market coming off the overbought conditions, the momentum might get negative soon.
Weekly Pivot Points:
WR3 - 1.3108
WR2 - 1.3004
WR1 - 1.2968
Weekly Pivot - 1.2874
WS1 - 1.2826
WS2 - 1.2727
WS3 - 1.2680
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 1.3012 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.
