Technical Market Outlook:

The GBP/USD pair has broken above the 161% Fibonacci extension seen at the level of 1.2086, so the ABC corrective cycle to the upside had been updated to typical impulsive 1-2-3-4-5 cycle to the upside. Currently, the market is making the wave v of the overall cycle and the target for this wave is located at 1.2248. The 50% Fibonacci retracement of the whole big wave down is seen at 1.2293, so the up move might extend towards this level as well. The key intraday technical support is seen at 1.2024.

Weekly Pivot Points:

WR3 - 1.21733

WR2 - 1.21168

WR1 - 1.20955

Weekly Pivot - 1.20603

WS1 - 1.20390

WS2 - 1.20038

WS3 - 1.19473

Trading Outlook:

The bulls are temporary in control of the market and the 50% Fibonacci retracement of the last big wave down located at 1.2293 might be tested soon. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. In order to terminate the down trend, bulls need to close the weekly candle above the level of 1.2275 (swing high from August 10th).