Technical Market Outlook:
The GBP/USD pair three wave bounce to the level of 1.3918 (high at 1.3927) had been capped and the market reversed towards 1.3878 again. The momentum is neutral as the volatility is now limited. The oversold market conditions might help bulls to move higher, but the potential wave up might be capped at the level of 1.3965 - 1.4007 again. However, the bulls have managed to bring the price back to the main channel again, so the chances for wave up are better. The key technical support for bulls is located at the level of 1.3807.
Weekly Pivot Points:
WR3 - 1.4166
WR2 - 1.4086
WR1 - 1.3971
Weekly Pivot - 1.3890
WS1 - 1.3768
WS2 - 1.3692
WS3 - 1.3573
Trading Recommendations:
The GBP/USD pair keeps developing the up trend and bulls are back inside the main ascending channel. The recent top was made at the level of 1.4224 and this was the higher high in over two years. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4374.
