Technical Overview:
The GBP/USD pair keeps trading around the level of 1.2962, which is just above the upper Flag price pattern line. The bulls are still trying to resume the uptrend, but the market conditions are now clearly overbought and the momentum is barely hanging above its fifty levels. If bulls fail to continue the rally towards the high located at the level of 1.3012 and above, then the bear will push the price towards the key short-term technical support located at the level of 1.2783.
Weekly Pivot Points:
WR3 - 1.3169
WR2 - 1.3078
WR1 - 1.3005
Weekly Pivot - 1.2910
WS1 - 1.2842
WS2 - 1.2734
WS3 - 1.2668
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.
