Technical Market Overview:
The GBP/USD pair has managed to test the technical resistance at the level of 1.3168, but the rally was capped around this level and bears once again took control of the market by printing the Pin Bar candlestick pattern. Since then, the bears have managed to push the price below the short-term trendline support around the level of 1.3075 and made a new local low at the level of 1.3051. The next target for bears is seen at the level of 1.3017, 1.2988 and 1.2962. If the last support is clearly violated, then the sell-off will continue towards the level of 1.2939. The weak and negative momentum supports the bearish outlook.
Weekly Pivot Points:
WR3 - 1.3380
WR2 - 1.3270
WR1 - 1.3179
Weekly Pivot - 1.3070
WS1 - 1.2967
WS2 - 1.2843
WS3 - 1.2751
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.
