Technical Market Overview:

The GBP/USD pair has failed to rally above the 61% Fibonacci retracement at 1.2324 and reversed towards the main technical support level located at 1.2156. This level has been recently violated as well as the market is now moving down towards the lower line of the Broadening Wedge. This dynamic support for the market is located around the level of 1.2130 - 1.2135 and if violated then the price will return to the downtrend and move further towards the level of 1.2118 and below. Weak and negative momentum supports the short-term negative outlook for this pair.

Weekly Pivot Points:

WR3 - 1.2411

WR2 - 1.2356

WR1 - 1.2237

Weekly Pivot Point - 1.2187

WS1 - 1.2067

WS2 - 1.2021

WS3 - 1.1902

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues towards the level of 1.2000 and below.