Technical Market Outlook:
The GBP/USD pair traders position themselves ahead of BoE interest rate decision today and the market had returned to the 61% Fibonacci retracement located at the level of 1.2201. For now it looks like another Bearish Engulfing candlestick pattern is in progress at the top of the move, but it all might be just positioning again. The intraday technical resistance is located at 1.2201 and the intraday technical support is seen at 1.2118. The momentum on the H4 time frame chart is back above the level of fifty, so bulls are temporary in 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.
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.