Technical Market Outlook:
The GBP/USD pair has hit the 38% Fibonacci retracement located on the level of 1.2697 on the Daily time frame chart and keeps hovering around this level. Just above the Fibonacci retracement level there is a immediate technical resistance seen at the level of 1.2769 and 1.2789, so it should temporary stop any bullish attempts. The intraday technical support is seen at the levels of 1.2686 and 1.2668. The market conditions are oversold, but momentum is weak and negative, which supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 - 1.3253
WR2 - 1.3131
WR1 - 1.3027
Weekly Pivot - 1.2896
WS1 - 1.2795
WS2 -1.2660
WS3 - 1.2557
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. The key long-term technical resistance is still seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518 is the reversal level) or accelerate towards the key long-term technical support is seen at the level of 1.1903 (1.2589 is the key technical support for this scenario).
