FX.co ★ Technical Analysis of GBP/USD for June 8, 2023

Technical Market Outlook:

The GBP/USD pair has bounced from the level of 1.2367 and has been consolidating in a narrow range seen just above the 50 and 100 MA level. The bulls tried to rally higher, but the rally was capped at the level of 1.2499 and the market reversed back to the range. The momentum reversed sharply from the extremely overbought conditions on the H4 time frame as well and is currently testing the neutral level of fifty on the RSI indicator. There is still a room for a momentum and price to move lower, so the short-term outlook remains bearish. The intraday technical support is seen at 1.2367 and the intraday technical resistance is located at 1.2499.

Weekly Pivot Points:

WR3 - 1.25080

WR2 - 1.24565

WR1 - 1.24223

Weekly Pivot - 1.24050

WS1 - 1.23708

WS2 - 1.23535

WS3 - 1.23020

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.