Technical Market Overview:
After the V-shape trend reversal pattern was made, the GBP/USD pair has made the new local high at the level of 1.2352. The market conditions are now overbought, despite the strong and positive momentum, so there might be a corrective cycle just around the corner, waiting to start. The nearest technical support is seen at the level of 1.2308 and the nearest technical resistance is seen at the level of 1.2381. 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.
