Technical Market Outlook

The GBP/USD pair has made a new local high at the level of 1.3832, but it looks like the market made a Double Top price pattern at this level. The strong and positive momentum indicates another higher high possibility, so the next target for bulls is seen at 1.3875 - 1.3911, but the overbought market conditions might cause a local pull-back towards the level of 1.3776, 1.3692 or 1.3679 during the down move. Only a sustained breakout below the technical support seen at 1.3647 would change the temporary outlook to more bearish.

Weekly Pivot Points:

WR3 - 1.4044

WR2 - 1.3902

WR1 - 1.3852

Weekly Pivot - 1.3708

WS1 - 1.3629

WS2 - 1.3498

WS3 - 1.3441

Trading Outlook:

The levels of 1.3408 and 1.3371 might gave good support for bulls as they are 55 and 200 weekly moving average levels, so the market had bounced significantly towards the level of 1.3750 again. Nevertheless, this move up still looks pretty much corrective in nature, so only a sustained breakout above the level of 1.4000 would change the outlook to more bullish with a target at 1.4200.