Technical Market Outlook:
The GBP/USD pair has been moving only inside of a smaller horizontal zone located between the levels of 1.3059 - 1.3161, so the breakout is highly anticipated. The bulls have managed to retrace 50% of the last wave down, but so far were capped at the level of 1.3161. The immediate technical support is seen at the level of 1.3077 and 1.3017. If the weekly high is violated, then the next target is seen at the level of 1.3283, but the long-term target for bulls is still located at 1.3518The zone between the levels of 1.3264 - 1.3077 on GBP/USD pair is now a clear battle zone between bulls and bears, so the winner will determine the next move of GBP.
Weekly Pivot Points:
WR3 - 1.3388
WR2 - 1.3323
WR1 - 1.3185
Weekly Pivot - 1.3117
WS1 - 1.2973
WS2 - 1.2907
WS3 - 1.2796
Trading Recommendations:
On the GBP/USD pair the main, multi-year trend is down, which can be confirmed by the down candles on the monthly time frame chart. Nevertheless, the recent rally form the multi-year lows seen at the level of 1.1404 has been successful and the trend might be reversing. The key long-term technical resistance is seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518) or accelerate towards the key long-term technical support is seen at the level of 1.1404.
