FX.co ★ Technical Analysis of GBP/USD for June 16, 2023

Technical Market Outlook:

The GBP/USD pair has broken above the technical resistance located at the level of 1.2676 and made a new monthly high at the level of 1.2817 (at the time of writing this article). The intraday technical support is seen at the level of 1.2700 and 1.2767. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for GBP, but due to the extremely overbought market conditions on the H4 time frame chart, the market might pull- back soon, but the bulls are still in control of this market.

Weekly Pivot Points:

WR3 - 1.26076

WR2 - 1.25904

WR1 - 1.25819

Weekly Pivot - 1.25732

WS1 - 1.25647

WS2 - 1.25560

WS3 - 1.25388

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.