FX.co ★ Technical Analysis of GBP/USD for July 12, 2022

Technical Market Outlook:

The GBP/USD pair has retraced 61% of the last wave down and hit the level of 1.2054 and the bounce had been capped at the top of the move after the Bearish Engulfing candlestick pattern was made around the level of 1.2000. Despite this bounce, the weak and negative momentum on the H4 time frame chart supports the bearish outlook. The new swing low was made at the level of 1.1175 (at the time of writing the article). 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.

Weekly Pivot Points:

WR3 - 1.2601

WR2 - 1.2311

WR1 - 1.2169

Weekly Pivot - 1.2022

WS1 - 1.1879

WS2 - 1.1732

WS3 - 1.14433

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 next long term target for bears is seen at the level of 1.1989. Please remember: trend is your friend.