Technical Market Overview:

The GBP/USD pair has bounced after hitting the level of 1.2848, but the bounce itself is shallow so far. All the moves up looked corrective anyway and the breakout from the recent range might be the beginning of a larger correction to the downside. In the meantime, the next technical resistance for the bulls is seen at the level of 1.2904 and 1.2939 and the local support is seen at the level of 1.2971 and 1.2848.

Weekly Pivot Points:

WR3 - 1.3333

WR2 - 1.3194

WR1 - 1.

Weekly Pivot - 1.3006

WS1 - 1.2943

WS2 - 1.2804

WS3 - 1.2739

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down in the longer term, 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 1.3512.