Technical Market Overview:
After the GBP/USD pair has broken through the key short-term technical support located at the level of 1.2904 (lower boundary of a narrow horizontal zone located between the levels of 1.2904 - 1.3226) the new low was made at the level of 1.2871, but this low was made on Pin Bar candlestick pattern. Moreover, the breakout occurred in oversold market conditions, but no bounce in momentum was made as it still is weak and negative. This breakout might be the beginning of a larger correction to the downside and the next target for bears is seen at the level of 1.2823. The immediate technical resistance is seen at the level of 1.2939 and it was tested and rejected already.
Weekly Pivot Points:
WR3 - 1.3353
WR2 - 1.3269
WR1 - 1.3041
Weekly Pivot - 1.2956
WS1 - 1.2722
WS2 - 1.2624
WS3 - 1.2379
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.
