Technical Market Overview:
The GBP/USD pair has rallied clearly towards the level of 1.3247, which is 61% Fibonacci retracement on the weekly timeframe chart. The bulls did not quite manage to get there but are very close to the level and this looks like their next target. The immediate technical support is seen at the level of 1.3121 - 1.3101. The market is still range bounded and only a sustained breakout through the level of 1.3512 would resume the uptrend on the larger timeframe. The strong and positive momentum supports the bullish outlook for the near term.
Weekly Pivot Points:
WR3 - 1.3548
WR2 - 1.3373
WR1 - 1.3306
Weekly Pivot - 1.3131
WS1 - 1.3071
WS2 - 1.2899
WS3 - 1.2839
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 1.3512.
