Technical Market Overview:
The GBP/USD pair has made the V-shape trend reversal technical pattern and hit the level of 1.2248 which is a technical resistance level. This kind of price formation, the V-shape reversal pattern, is a very strong signal that the market participants are about to change their sentiment from bearish to bullish. It as well might be a reaction to the last test of the key long term technical support level at 1.1988 that has not been seen for at least 3 years. The next target for bulls is seen at the level of 1.2308. The larger timeframe trend remains down.
Weekly Pivot Points:
WR3 - 1.2411
WR2 - 1.2356
WR1 - 1.2237
Weekly Pivot Point - 1.2187
WS1 - 1.2067
WS2 - 1.2021
WS3 - 1.1902
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 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues towards the level of 1.2000 and below.
