Technical Market Outlook
The GBP/USD pair has made a massive reversal candlestick on H4 time frame chart after hitting the level of 1.3277. The big short-squeeze has hit the level of 38% Fibonacci retracement at 1.3414 and made a local high at 1.3437. The oversold market conditions and increasing momentum support the short-term bullish market outlook. The next target for bulls is seen at 1.3484 and the immediate technical support is located at 1.3370.
Weekly Pivot Points:
WR3 - 1.3817
WR2 - 1.3724
WR1 - 1.3655
Weekly Pivot - 1.3572
WS1 - 1.3510
WS2 - 1.3417
WS3 - 1.3348
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.