FX.co ★ Technical Analysis of GBP/USD for May 2, 2022

Technical Market Outlook:

The GBP/USD market had found a temporary bottom at the level of 1.2410 and is currently trying to bounce higher, so a pull-back might be still on table, because the level of 1.2494 is a 61% retracement level of the whole post-Covid rally on the weekly time frame chart. The nearest technical resistance is located at 1.2648 and 1.2686. Despite the oversold market conditions on the H4 and Daily time frame charts, the down trend continues and there is no indication of trend termination or reversal just yet.

Weekly Pivot Points:

WR3 - 1.3200

WR2 - 1.3027

WR1 - 1.2781

Weekly Pivot - 1.2594

WS1 - 1.2347

WS2 - 1.2171

WS3 - 1.1921

Trading Outlook:

The price broke below the level of 1.3000, so the bears enforced and confirmed their control over the market in the long term. The Cable is below 100 and 200 WMA already, so the bearish domination is clear. The next long term target for bears is seen at the level of 1.2494 (61% retracement level of the whole post-Covid rally), so if this level is violated, the down trend will extend lower. Please remember: trend is your friend.