Technical Market Outlook

The GBP/USD pair has extended the pull-back to the level of 1.3567 and is currently trying to resume the up trend. The bulls retraced 38% of the last waved down, but so far they can not break through the level of 1.3638 (pin Bar candlestick formation of the H4 time frame chart around this level). The next target for bulls is located at 1.3673 and the immediate technical support is still seen at 1.3604. The momentum is weak and negative, but the market conditions on the H4 time frame chart are bouncing from the extremely oversold conditions, so the test of the level of 1.3673 is still on table. Please pay attention to the level of 61% Fibonacci retracement seen at 1.3680, the key retracement for the pull-back cycle. On the larger time frame charts, like daily and weekly, the up trend is still being continued.

Weekly Pivot Points:

WR3 - 1.3997

WR2 - 1.3859

WR1 - 1.3773

Weekly Pivot - 1.3654

WS1 - 1.3552

WS2 - 1.3440

WS3 - 1.3332

Trading Outlook:

The up trend is being continued, but the up move might be terminated due to the Shooting Star candlestick pattern made at the daily time frame chart at the level of 1.3717. The overall move from the level of 1.3170 looks like a V-shape reversal pattern, so in the long-term the trend might be about to change from the multi-month down trend to the up trend. Please keep an eye on the level of 1.3500, because any sustained breakout below this level will change the outlook back to the bearish again.