Technical Market Outlook:

The GBP/USD pair bounce has been capped at 38% Fibonacci retracement located at the level of 1.3763. The market reversed as the Bearish Engulfing pattern was made. The market conditions are still quite oversold, so if the level of 1.3763 is violated, then the bulls might extend the bounce towards 50% Fibonacci retracement of the last wave down located at 1.3792. Please notice, the momentum is still weak and negative, so the bears are still in control of the market and all the bounces are so far the counter-trend corrective in nature.

Weekly Pivot Points:

WR3 - 1.4080

WR2 - 1.4000

WR1 - 1.3827

Weekly Pivot - 1.3750

WS1 - 1.3579

WS2 - 1.3494

WS3 - 1.3340

Trading Recommendations:

The GBP/USD pair keeps developing the up trend and bulls are back inside the main ascending channel. The recent top was made at the level of 1.4224 and this was the higher high in over two years. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370.