Technical Market Outlook:

The GBP/USD pair has broken below the short-term trend line support and made a new local low at the level of 1.2189 ( at the time of writing the analysis). The momentum is weak and negative, which indicates the bears are in control of this market and the next target for bears is seen at the level of 1.2200 and 1.2026. The intraday technical support is seen at 1.2178 and the intraday technical resistance is located at 1.2262. Any breakout below the 50 MA seen around the level of 1.2201 will accelerate the correction pace towards the lower levels like 100 MA located at 1.2036.

Weekly Pivot Points:

WR3 - 1.22794

WR2 - 1.22587

WR1 - 1.22462

Weekly Pivot - 1.2238

WS1 - 1.22255

WS2 - 1.22173

WS3 - 1.21966

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.