Technical Market Outlook:
After a new local high was made at the level of 1.3016, the bears had took control of the market again and push the price way lower towards the middle of the GBP/USD trading range again. The market backed off from the overbought conditions and the momentum indicator is showing negative - to - neutral momentum at the H4 timeframe chart. The market trades aimlessly for now until one of the key levels is finally clearly violated. The next technical support is seen at the level of 1.2904 and 1.2871.
Weekly Pivot Points:
WR3 - 1.3255
WR2 - 1.3152
WR1 - 1.3043
Weekly Pivot - 1.2942
WS1 - 1.2840
WS2 - 1.2740
WS3 - 1.2640
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.
