Technical Market Overview:

Despite the fact, that the technical support located at the level of 1.2786 was slightly broken as the local low was made at the level of 1.2769, the GBP/USD market has bounced clearly towards the middle of the range. Nevertheless, the momentum is still rather weak and just slightly positive despite the oversold conditions, so the next leg will likely be down again. The nearest technical support is seen at the level of 1.2705 and the nearest technical resistance is seen at the level of 1.2939.

Weekly Pivot Points:

WR3 - 1.3033

WR2 - 1.2987

WR1 - 1.2853

Weekly Pivot - 1.2816

WS1 - 1.2681

WS2 - 1.2633

WS3 - 1.2516

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 1.3000 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. As long as the price is trading below this level, the downtrend continues towards the level of 1.1957 and below.