Technical Market Overview:
The GBP/USD pair rally bounced from the technical support located at the level of 1.2904 but is still trading inside of a narrow channel. The bulls have managed to break through the short-term descending trendline resistance around the level of 1.2970 and clearly want to continue the move up. Moreover, the market is bounced from the oversold conditions and the momentum just broke through the fifty levels, which means the move up might get some steam. The next target for bulls is seen at the level of 1.3039 and 1.3101. The immediate support is seen at the level of 1.3012, 1.2988 and 1.2962.
Weekly Pivot Points:
WR3 - 1.3654
WR2 - 1.3526
WR1 - 1.3206
Weekly Pivot - 1.3091
WS1 - 1.2763
WS2 - 1.2640
WS3 - 1.2325
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 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.
