Technical Market Outlook:

The GBP/USD pair has bounced from the new yearly low seen at 1.1802 and keeps heading towards the upper range level located at 1.2265. The level of 1.2141 that was acting as a technical resistance was violated, so a breakout above this level means termination of the down trend and possible rally higher. The level of 1.2146 remains the key short-term technical support. The market conditions are now extremely overbought, so if there is no breakout higher, the local pull-back is welcome.

Weekly Pivot Points:

WR3 - 1.22774

WR2 - 1.21904

WR1 - 1.21531

Weekly Pivot - 1.21034

WS1 - 1.20661

WS2 - 1.20164

WS3 - 1.19294

Trading Outlook:

So far the level of 1.2443 was too strong resistance to break through, so a potential Double Top price pattern is still in play. Moreover, the level of 1.2297 which is 50% Fibonacci retracement level of the last big wave down had been hit, so the bears resumed the down trend. The down trend was confirmed with the level of 1.2089 breakout (50 WMA), so now the potential target for bears is seen at the level of 1.1840 or below.