Technical Market Outlook:
The GBP/USD pair has bounced from the extremely oversold market conditions and moved back inside the H4 time frame channel. Moreover, the market is again trading above the key long-term and short-term technical support located at 1.1410 after the local high was made at 1.1540. The next target for bulls is seen at the level of 1.1622 and 1.1646 (swing high and temporary wave C top). The strong and positive momentum supports the short term bullish outlook for GBP.
Weekly Pivot Points:
WR3 - 1.14110
WR2 - 1.13668
WR1 - 1.13400
Weekly Pivot - 1.13226
WS1 - 1.12958
WS2 - 1.12784
WS3 - 1.12342
Trading Outlook:
Despite the recent upward ABC correction towards the level of 1.1625, the Bearish Engulfing candlestick pattern was made at the top of the bounce and the bears are still in charge of the market. 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. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).