FX.co ★ Technical Analysis of GBP/USD for May 18, 2023

Technical Market Outlook:

The GBP/USD pair keeps moving lower after the breakout below all the moving averages. The market is under the bearish pressure and is slowly approaching the key technical support seen at 1.2352. The intraday technical resistance located at 1.2538 is still intact, so after a reversal the next target for bears is seen at 1.2420 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.