Technical Market Outlook:
The GBP/USD pair had reversed dynamically from the level of 1.1739 and the local demand zone located between the levels of 1.1598 - 1.1622 had been easily violated. For now the volatility is subdued, because the market participants await the Bank of England interest rate decision scheduled for release at 3:00 PM today. The next target for bears is located at the level of 1.1410 again, which is the 7 years low for the GBP. Please keep an eye on the support level, because any violation of this level will have a very drastic consequences, like an accelerated sell-off towards the next technical support.
Weekly Pivot Points:
WR3 - 1.16716
WR2 - 1.16430
WR1 - 1.16286
Weekly Pivot - 1.16144
WS1 - 1.16000
WS2 - 1.15858
WS3 - 1.15572
Trading Outlook:
The bulls has failed big time to continue the corrective cycle after a big Bearish Engulfing candlestick pattern was made on the weekly time frame. The bears tested the level of 1.1410 (2020 swing low) and now the market is in the pull back mode. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).