FX.co ★ Technical Analysis of GBP/USD for June 7, 2022

Technical Market Outlook:

The GBP/USD pair had broken below the technical support located at 1.2466 (last week low), so this level now becomes even more important and will act as a resistance from now on. As long as the market trades above the level of 1.2466, there are still chances for the breakout higher, but the bulls needs to be more aggressive and dynamic in order to perform the breakout as the bearish pressure intensify: the momentum is now weak and negative, market is off the overbought levels, so in the case of a breakout extension the test of the 50% Fibonacci retracement (1.2410) or 61% Fibonacci retracement (1.2350) is still possible.

Weekly Pivot Points:

WR3 - 1.2780

WR2 - 1.2715

WR1 - 1.2585

Weekly Pivot - 1.2516

WS1 - 1.2384

WS2 - 1.2311

WS3 - 1.2185

Trading Outlook:

The price broke below the level of 1.3000 quite long time 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.