Technical Market Overview:
The GBP/USD pair has bounced from extremely oversold market conditions and broke through the local technical resistance at the levels of 1.2476, 1.2505 and 1.2529. So far the bounce is shallow and the main technical resistance at the level of 1.12559 has not been tested, but the momentum is positive, so there is a chance for another rally towards the trendline around the level of 1.2600.
Weekly Pivot Points:
WR3 - 1.2853
WR2 - 1.2772
WR1 - 1.2630
Weekly Pivot - 1.2551
WS1 - 1.2402
WS2 - 1.2319
WS3 - 1.2180
Trading Recommendations:
The best strategy for the current market conditions is to follow the larger timeframe trend. The larger time frame trend is still down and there are no signs of any trend reversal. The key long-term technical support is seen at the level of 1.2420 and the key long-term technical resistance is seen at the level of 1.2775 and only if this level is violated, there is a chance for the trend reversal.
