FX.co ★ Technical Analysis of GBP/USD for May 11, 2023

Technical Market Outlook:

The GBP/USD pair has made another new swing high at the level of 1.2678, so the technical resistance located t 1.2666 was broken. After the new swing high was made, the Bearish Engulfing candlestick pattern was made at the top of the move, so the market pulled-back. The intraday technical support is seen at the level of 1.2583, so please keep an eye on this level as any breakout lower might trigger the bigger correction on Pound. The momentum on H4 time frame chart is positive and strong, so when the local pull-back is completed, then the next target for bulls is seen at 61% Fibonacci retracement located at the level of 1.2778. The key short-term technical support is seen at 1.2343.

Weekly Pivot Points:

WR3 - 1.27061

WR2 - 1.26746

WR1 - 1.26607

Weekly Pivot - 1.26431

WS1 - 1.26292

WS2 - 1.26116

WS3 - 1.25801

Trading Outlook:

Pound continues the corrective cycle to the upside and on the Weekly time frame chart the price is about to hit the 61% Fibonacci retracement located at the level of 1.2778. When this level is hit, the high volatility is expected, so please stay focused as the bears will defend this level strongly.