Technical Market Overview:
The GBP/USD pair has broken out from the main descending channel around the level of 1.3055 and made a local high at the level of 1.3085 (at the time of writing the analysis). Due to the strong momentum, the next target for bulls is seen at the level of 1.3101 or even at 1.3121 - 1.3131. Nevertheless, the nature of the current move up is still corrective, so when it is completed, another wave down is being anticipated.
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.
