Technical market overview:
The GBP/USD pair has made a new local high at the level of 1.2705 (the level of 200 MA on the daily timeframe chart) after the impressive bounce from the level of 1.2206 was made. This 500 pips move is backed by strong and positive momentum and despite the overbought market conditions, there is still a chance for another leg up towards the level of 1.2783. The immediate technical support is seen at the level of 1.2580 - 1.2561 zone, so as long as the price is trading above this zone, the chances for another leg up are high.
Weekly Pivot Points:
WR3 - 1.3395
WR2 - 1.3032
WR1 - 1.2877
Weekly Pivot - 1.2532
WS1 - 1.2380
WS2 - 1.2032
WS3 - 1.1859
Trading recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2907 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 1.3509. As long as the price is trading below this level, the downtrend continues towards the level of 1.1957 and below.
