FX.co ★ Technical Analysis of GBP/USD for May 24, 2023

Technical Market Outlook:

The GBP/USD pair had made the recent low at the level of 1.2372, but after the Bullish Engulfing candlestick pattern was made, the bulls bounce and broke above the short-term trend line resistance seen around the level of 1.2436. nevertheless, the market is still under the bearish pressure. The intraday technical resistance located at 1.2444 is still intact, so after a reversal the next target for bears is seen at 1.2386 and 1.2352. The weak and negative momentum on the H4 time frame chart support the short-term bearish outlook for GBP as the potential Falling Wedge price pattern in progress on H4 time frame chart.

Weekly Pivot Points:

WR3 - 1.25323

WR2 - 1.24900

WR1 - 1.24662

Weekly Pivot - 1.24477

WS1 - 1.24239

WS2 - 1.24054

WS3 - 1.23631

Trading Outlook:

A Bearish Engulfing candlestick pattern on the Weekly time frame chart 100 pips away from the 61% Fibonacci retracement located at the level of 1.2778 might indicate the corrective cycle to the upside had been terminated. Any sustained breakout below the technical support at 1.2444 will be the first indication of stronger bearish pressure.