Technical Market Overview:

The GBP/USD pair has dropped from the level of 1.3285 to the level of 1.3048 which was 61% Fibonacci retracement of the last wave up and the area of the main channel lower boundary. In this situation, the bulls have taken control of the market and pushed the price towards the level of 1.3121, which is the local technical resistance level. The momentum remains neutral to negative, so the odds for another move down are high. The target for bears is seen at the level of 1.3017 or 1.2988.

Weekly Pivot Points:

WR3 - 1.3419

WR2 - 1.3347

WR1 - 1.3185

Weekly Pivot - 1.3120

WS1 - 1.2957

WS2 - 1.2894

WS3 - 1.2801

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.