Technical Market Outlook:
The recent GBP/USD rally was capped at the level of 1.3306, because a Pin Bar and then a Shooting Star candlestick were made at its top. Currently, the price has broken below 38% of Fibonacci retracement 1.3133 and made a new low at the level of 1.3105. The next technical support is seen at the level of 1.3078 and 1.3121. Please notice, the market is coming off the overbought conditions, which supports the short-term bearish outlook as long as the technical resistance at the level of 1.3169 is not broken.
Weekly Pivot Points:
WR3 - 1.3631
WR2 - 1.3400
WR1 - 1.3312
Weekly Pivot - 1.3083
WS1 - 1.2991
WS2 - 1.2762
WS3 - 1.2666
Trading Recommendations:
The GBP/USD pair is in the down trend on the monthly time frame, but the recent bounce from the low at 1.1411 made in the middle of March 2020 looks very strong and might be a reversal swing. In order to confirm the trend change, the bulls have to break through the technical resistance seen at the level of 1.3518. All the local corrections should be used to enter a buy orders as long as the level of 1.2674 is not broken.
