Technical Market Outlook
The GBP/USD pair has broken above the Novembers high located at the level of 1.3516 and made a new swing high at the level of 1.3549. The immediate technical support is seen at the level of 1.3471 and 1.3428. Moreover, the market keeps bouncing up from the short-term trend line support as well. The strong and positive momentum support the short-term bullish outlook for GBP, however, the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back towards the level of 1.3410 is welcome.
Weekly Pivot Points:
WR3 - 1.3774
WR2 - 1.3658
WR1 - 1.3620
Weekly Pivot - 1.3485
WS1 - 1.3451
WS2 - 1.3393
WS3 - 1.3287
Trading Outlook:
Despite the recent breakout above the level of 1.3514, the GBP/USD is still in the down trend as the 61% Fibonacci retracement of the last wave down hasn't been event tested yet. The market is in the down trend with a long-term target located at 1.2668 ( September 2020 lows) as long as the level of 1.3579 is not clearly broken.