FX.co ★ Technical Analysis of GBP/USD for May 31, 2023

Technical Market Outlook:

The GBP/USD pair had made the last swing low at the level of 1.2308 as the market is still under the bearish pressure, but the bulls have managed to retrace 38% of the last wave down and hit the level of 1.2445. The pull-backs are still rather shallow, but the market is trading between 50 and 100 MA already. The intraday technical resistance is located at 1.2428 (100 MA level). The momentum is strong and positive on the H4 time frame chart, which supports the bullish short-term outlook for GBP. The next target for bulls is 50% Fibonacci retracement seen at 1.2492 and 61% Fibonacci retracement seen at 1.2538.

Weekly Pivot Points:

WR3 - 1.23581

WR2 - 1.23505

WR1 - 1.23473

Weekly Pivot - 1.23429

WS1 - 1.23397

WS2 - 1.23353

WS3 - 1.23277

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.