Technical Market Overview:
The GBP/USD pair has fallen out of the channel zone (marked on the chart in black) and is trading back and forth around the level of 1.3121, testing the lower channel line from below. In this situation, the bears have taken control of the market and might push the price towards the level of 1.3017, which is the local technical support level. In order to continue the move higher, the bulls must break through the level of 1.3171. The momentum has changed from neutral to negative, so the odds for another move up are low. The target for bears is seen at the level of 1.3051, 1.3017 and 1.2988.
Weekly Pivot Points:
WR3 - 1.3419
WR2 - 1.3347
WR1 - 1.3185
Weekly Pivot - 1.3120
WS1 - 1.2957
WS2 - 1.2894
WS3 - 1.2801
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 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.
