Technical Overview:

The GBP/USD pair has made Bullish Engulfing candlestick pattern at the level of 1.2511, so the bulls are trying to bounce. The momentum is weak and negative, so it supports the move down, but the market conditions are starting to bounce from the oversold levels, so some kind of the local-pull back is expected before the move down will continue. The next technical resistance is seen at the level of 1.2559 and 1.2605. The higher time frame trend is still down and there are no signs of any trend reversal.

Weekly Pivot Points:

WR3 - 1.2846

WR2 - 1.2797

WR1 - 1.2673

Weekly Pivot - 1.2620

WS1 - 1.2493

WS2 - 1.2439

WS3 - 1.2301

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and corrections should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.