Technical market overview:

The GBP/USD pair has moved lower and hit the technical support at the level of 1.3012. The bounce after the hit was shallow and the price went up only to hit the level of 1.3155, mainly due to the oversold market conditions. Nevertheless, an event the move down did not solve the problem of consolidation as any of the important levels was violated and the price returned to the mean. The momentum remains weak and negative, so the market might resume its recent down move and test the level of 1.3012 or 1.3000 again. Any breakout lower will be a game-changing move for the whole market.

Weekly Pivot Points:

WR3 - 1.3917

WR2 - 1.3636

WR1 - 1.3473

Weekly Pivot - 1.3224

WS1 - 1.3055

WS2 - 1.2794

WS3 - 1.2638

Trading recommendations:

The market is still in a consolidation phase, so it will be better to wait for a trading setup after the consolidation terminates. The best one would be a breakout in either direction, but due to the fact that the trend is still up, traders should prefer to buy in the local corrections and wait for the market to resume the up move. Only a sustained breakout below the level of 1.2959 would invalidate the short-term bullish bias and deepen the correction.