Technical Market Overview:

After the breakout from the Triangle pattern had occurred, the GBP/USD pair has hit the new highs located at the level of 1.3127. The momentum is strong and positive, so this move up might get some extension even higher. The technical resistance zone has been made with these levels: 1.3101, 1.3121 and 1.3031 and the technical support zone has been made with levels of 1.3039, 1.3012 and 1.2988, so currently the bulls are testing the final level of the current technical resistance zone. Only a clear breakout in either direction will show the next possible move on this pair.

Weekly Pivot Points:

WR3 - 1.3101

WR2 - 1.3019

WS3 - 1.2978

Weekly Pivot - 1.2902

WS1 - 1.2850

WS2 - 1.2773

WS3 - 1.2725

Technical 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 1.3012 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.