Technical Analysis of GBP/USD for October 31, 2023

Technical Market Outlook:

The GBP/USD pair has been seen bouncing from the 38% Fibonacci retracement level located at the level of 1.2141. The local low was made at the level of 1.2135 and currently bulls are trying to bounce above the 50 MA seen at 1.2154. The intraday technical resistance is located at 1.2163 and the intraday technical support is seen at 1.2148. The momentum on the H4 time frame chart is back above the level of fifty, so bulls are in temporary control of the market. Please notice, that the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart. Please keep an eye on the monthly candle close today.

Weekly Pivot Points:

WR3 - 1.21462

WR2 - 1.21306

WR1 - 1.21244

Weekly Pivot - 1.2115

WS1 - 1.21088

WS2 - 1.20994

WS3 - 1.20838

Trading Outlook:

The weekly time frame chart shows the Bearish Engulfing candlestick pattern was made during the breakout attempt above the 1.3163, so the bears are in charge of the market and they are pushing the price lower. The market already trades below 50 and 100 WMA. Any sustained breakout below the key long term technical support seen at the level of 1.1802 would dramatically increase the chances of another leg down towards the level of 1.1494.