Technical Market Overview:
The battle of 61% Fibonacci retracement on the weekly timeframe on GBP/USD has been lost by bulls. The bears have managed to push the prices below the technical support located at the level of 1.3101 and made a new local low at the level of 1.3059. Moreover, the price fell out of the old main channel as well, which additionally indicates the strength of the bearish move. The next target for bears is seen at the level of 1.3039 and the immediate technical resistance is seen at the level of 1.3131.
Weekly Pivot Points:
WR3 - 1.4019
WR2 - 1.3748
WR1 - 1.3564
Weekly Pivot - 1.3301
WS1 - 1.3081
WS2 - 1.2836
WS3 - 1.2626
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.
