FX.co ★ Technical Analysis of GBP/USD for May 17, 2023

Technical Market Outlook:

The very short-lived bounce on the GBP/USD pair has hit the moving average at the level of 1.2545 and then reversed sharply lower. The intraday technical resistance located at 1.2538 is still intact, so after a reversal the next target for bears is seen at 1.2444 and 1.2386. The weak and negative momentum on the H4 time frame chart support the short-term bearish outlook for GBP.

Weekly Pivot Points:

WR3 - 1.25324

WR2 - 1.24987

WR1 - 1.24851

Weekly Pivot - 1.24650

WS1 - 1.24514

WS2 - 1.24313

WS3 - 1.23976

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.