Technical Market Outlook
Despite the face, that the GBP/USD pair has made a massive reversal candlestick on H4 time frame chart after hitting the level of 1.3277, today''s open is again close to the last week low. The big short-squeeze has hit the level of 38% Fibonacci retracement at 1.3414 and made a local high at 1.3437, but then the bullish pressure was capped. 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 - 1.3901
WR2 - 1.3765
WR1 - 1.3529
Weekly Pivot - 1.3404
WS1 - 1.3174
WS2 - 1.3022
WS3 - 1.2799
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.