Technical Market Outlook

The GBP/USD pair has made a new local low at the level of 1.3640 and currently the bulls are trying to bounce towards 1.3705. So far the bullish bounce was very shallow and the market had started to consolidate. The next target for bears is seen at the level of 1.3624 and 1.3608. Any violation of the latter would extend the sell-off towards the level of 1.3601, which is the last month's low. The nearest technical resistance is seen at 1.3705 and 1.3745. The weak and negative momentum supports the short-term bearish outlook for EUR despite the extremely oversold market conditions at the H4 time frame chart.

Weekly Pivot Points:

WR3 - 1.4015

WR2 - 1.3960

WR1 - 1.3826

Weekly Pivot - 1.3774

WS1 - 1.3640

WS2 - 1.3579

WS3 - 1.3456

Trading Outlook:

The weekly time frame chart still shows, that the up trend is still intact and the corrective wave had terminated at the level of 1.3571. Only a sustained violation of the level of 1.3518 would trigger a bigger down move than a regular pull-back. The up trend can be continued towards the next long-term target located at the level of 1.4246 (high from 24.02.2021).