FX.co ★ Technical Analysis of GBP/USD for May 23, 2022

Technical Market Outlook:

The GBP/USD pair has bounced from the lows seen at the level of 1.2155 last week and continues to move higher. Currently, bulls has broken above the technical resistance located at 1.2511 (now intraday support) and are heading towards the key supply zone located between the levels of 1.2615 - 1.2697. Any violation of this zone would change the short-term outlook to more bullish as the market could target even the level of 1.3000 again. The strong and positive momentum support the short-term bullish outlook for Cable, however the market conditions look overbought and quick pull-back is welcome.

Weekly Pivot Points:

WR3 - 1.2933

WR2 - 1.2731

WR1 - 1.2632

Weekly Pivot - 1.2626

WS1 - 1.2321

WS2 - 1.2106

WS3 - 1.2001

Trading Outlook:

The price broke below the level of 1.3000 six weeks ago, so the bears enforced and confirmed their control over the market in the long term. The Cable is way below 100 and 200 WMA , so the bearish domination is clear and there is no indication of trend termination or reversal. The bulls are now trying to start the corrective cycle, which is welcome after eight weeks of the down move. The next long term target for bears is seen at the level of 1.1989. Please remember: trend is your friend.