Technical Market Outlook:
The GBP/USD pair has bounced over 11.11% from the lowest level since 1985 located at 1.0352 and terminated the five wave impulsive pattern at the level of 1.1494. Despite the recent strong bounce, only a clear and sustained breakout above the level of 1.1496 would change the outlook to bullish. The intraday technical support is seen at the level of 1.1023 and the projected target for the wave C of the correction is located at 1.1108 and 1.0944. The momentum is weak and negative, which supports the short-term bearish outlook for Pound.
Weekly Pivot Points:
WR3 - 1.11884
WR2 - 1.11353
WR1 - 1.11071
Weekly Pivot - 1.10822
WS1 - 1.10540
WS2 - 1.10291
WS3 - 1.09760
Trading Outlook:
The bears are still in charge of Cable and the next long-term target for them is the parity level. The level of 1.0351 has not been tested since 1985, so the down trend is strong, however, the market is extremely oversold on longer time frames already. On the other hand, in order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).