FX.co ★ Technical Analysis of GBP/USD for July 7, 2023

Technical Market Outlook:

The GBP/USD pair has made another local high at the level of 1.2779 and currently is consolidating the recent gains in a narrow range above the short -term trend line support. The 61% Fibonacci retracement level located at 1.2750 has been violated as well, so the bulls are in control of the market. The immediate technical support is seen at the level of 1.2672 (100 MA), but the key technical support is seen at 1.2590. The strong and positive momentum supports the bullish outlook on the H4 time frame chart.

Weekly Pivot Points:

WR3 - 1.27765

WR2 - 1.27279

WR1 - 1.27004

Weekly Pivot - 1.26793

WS1 - 1.26518

WS2 - 1.26307

WS3 - 1.25821

Trading Outlook:

The 61% Fibonacci retracement located at the level of 1.2778 has been hit, but it does not indicate the corrective cycle to the upside had been terminated. Any sustained breakout above this level and a weekly candle close above it is needed to change the long-term outlook to bullish. The key long term level of technical support is seen at 1.2444. The next long-term target for bulls is seen at the level of 1.3160.