Technical Market Outlook:

The GBP/USD pair has fallen out of the ascending channel and broke below the technical support located at the level of 1.3745. The market is trying to bounce now, but so far it was a shallow bounce as the next target for bears is seen at the level of 1.3705. The larger time frame trend is still up and the lower channel boundary on the weekly time frame chart is being respected by market participants. As long as the market trades above this line, the up trend is intact.

Weekly Pivot Points:

WR3 - 1.4036

WR2 - 1.3940

WR1 - 1.3894

Weekly Pivot - 1.3797

WS1 - 1.3747

WS2 - 1.3652

WS3 - 1.3595

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.