Technical Market Outlook:
The GBP/USD pair has extended the retracement even lower and hit the internal trend line support seen around the level of 1.2211. The Pin Bar candlestick was made during the spike down before the bounce, so the local low is seen now at the level of 1.2186. The technical resistance is located at 1.2336 and the intraday technical support is seen at 1.2198.The next target foe bears is seen at the level of 1.2186 and 1.2168. The momentum on the H4 time frame chart is back below the level of 50, so bears 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, so as long as the level of 1.2466 (long-term technical resistance) is not clearly violated, the down trend might be resumed soon.
Weekly Pivot Points:
WR3 - 1.2615
WR2 - 1.2522
WR1 - 1.2374
Weekly Pivot - 1.2281
WS1 - 1.2133
WS2 - 1.2040
WS3 - 1.1892
Trading Outlook:
The weekly time frame chart shows the Bullish Engulfing candlestick pattern was made during the breakout above the level of 1.2340, so the bulls are in charge of the market and they are pushing the price higher. The market already trades above 50 WMA and is heading towards 100 WMA seen at 1.2504. On the other hand, 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.