The GBP/USD pair has been hovering around the level of 1.3000 after a failure to get back to the channel. The Bearish Engulfing pattern has been made around the lower channel line at 1.3035 and since then the bears have took control of the market. Nevertheless, the move upwards looks corrective so far, and the breakout from the recent range 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. In the meantime, the next technical resistance for the bulls is seen at the level of 1.3047 and the local support is seen at the level of 1.2988.
Weekly Pivot Points:
WR3 - 1.3333
WR2 - 1.3194
WR1 - 1.
Weekly Pivot - 1.3006
WS1 - 1.2943
WS2 - 1.2804
WS3 - 1.2739
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.
