Technical Market Overview:
The GBP/USD pair has moved towards the upper channel line located around the level of 1.3082 and clearly broke through it. Moreover, the bulls have managed to break through the technical resistance located at the level of 1.3121 and 1.3131(as anticipated) before the bears have reacted. Nevertheless, it looks like the downtrend is still might be continued as new lower lows are still being made, but before that happens, the bulls might have a test of the weekly Fibonacci retracement seen at the level of 1.3247. On the other hand, any violation of the level of 1.2939 will directly lead to the sell-off extension towards the level of 1.2904 and 1.2786. The weak and negative momentum supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 - 1.3247
WR2 - 1.3172
WR1 - 1.3080
Weekly Pivot - 1.3013
WS1 - 1.2913
WS2 - 1.2847
WS3 - 1.2749
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.
