Technical Market Overview:

The descending trendline breakout was very short-lived after the GBP/USD market has broken back below the level of 1.2480 after the failed rally to the level of 1.2556. The weak and negative momentum supports the short-term bearish outlook as the bears are in control of the market despite the battle of the trendline. New local lows made at the level of 1.2417 should be soon violated as well and the level of 1.2381 should be tested again soon. In a case of a further breakout, the next target for bears is seen at the level of 1.2100 (weekly support).

Weekly Pivot Points:

WR3 - 1.2789

WR2 - 1.2679

WR1 - 1.2588

Weekly Pivot - 1.2485

WS1 - 1.2394

WS2 - 1.2201

WS3 - 1.1089

Trading Recommendations:

The best strategy for the current market conditions is to follow the larger timeframe trend. The larger time frame trend is still down and there are no signs of any trend reversal. The key long-term technical support at the level of 1.2420 has been violated and the next target for bears is seen at the level of 1.2100 and 1.1983.