Technical Market Overview:
The GBP/USD pair has bounced from the level of 1.2962 and bulls are trying to make another wave up towards the level of 1.3100 where the upper channel line is located. The pair has broken through the local technical resistance at the level of 1.3017 already. On the other hand, bears are still making pressure on the market because they are trying to test and possibly break out below the technical support at 1.2962 and head towards the next target located at the level of 1.2939. This is the last local support before the swing technical support located at the level of 1.2904. The negative momentum supports the short-term bearish outlook for Cable, but the larger timeframe trend remains up (for now).
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.
