Technical Market Overview:
The GBP/USD pair did not bounce much after the drop to the level of 1.3017 as it is still locked inside of a narrow zone located between the levels of 1.3101 - 1.3017. The bears are still making pressure on the market because they are trying to test and possibly break out below the technical support at 1.3017 and head towards the next target located at the level of 1.2988 or 1.2962. The negative momentum supports the short-term bearish outlook for Cable, but the larger timeframe trend remains up.
Weekly Pivot Points:
WR3 - 1.3350
WR2 - 1.3274
WR1 - 1.3145
Weekly Pivot - 1.3077
WS1 - 1.2952
WS2 - 1.2870
WS3 - 1.2758
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down in the longer term, 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.
