FX.co ★ Technical Analysis of GBP/USD for July 8, 2022

Technical Market Outlook:

The GBP/USD pair has retraced 61% of the last wave down and hit the level of 1.2054 before the pull-back. Despite this bounce, the weak and negative momentum on the H4 time frame chart supports the bearish outlook. The supply zone located between the levels of 1.2160 - 1.2187 is still the main short-term obstacle for bulls that needs to be broken if the rally is expected to be continued, but for now bulls can not even get back to the main channel or violate the 61% Fibonacci retracement level.

Weekly Pivot Points:

WR3 - 1.2633

WR2 - 1.2481

WR1 - 1.2267

Weekly Pivot - 1.2126

WS1 - 1.1916

WS2 - 1.1757

WS3 - 1.1543

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 after a big Pin Bar candlestick pattern was made last week. The next long term target for bears is seen at the level of 1.1989. Please remember: trend is your friend.