Technical market overview:

The GBP/USD pair has made the largest correction in the whole upswing from the level of 1.2772, so the overbalance of the price and time is now present on the chart. This means the recent move down is not a part of the move up, but a separate down cycle, possibly a corrective in nature. The overall trend is still up, so any down moves are considered as a corrective anyway. The target for the bears is seen at the level of 1.3155, or 1.3139, or 1.3127 (a wall of supports down there). The momentum remains neutral to bullish as it slightly bounces from its fifty levels as the market is coming off the overbought conditions.

Weekly Pivot Points:

WR3 - 1.3631

WR2 - 1.3485

WR1 - 1.3333

Weekly Pivot - 1.3193

WS1 - 1.3047

WS2 - 1.2894

WS3 - 1.2742

Trading Recommendations:

All buy orders from the last week should be still kept open, but the daytraders should open sell orders with a target set at the level of 1.3155, 1.3139 and 1.1327. As long as the 38% Fibonacci retracement at the level of 1.3120 is not clearly violated there is still a pretty good chance for the trend resumption in the nearest future.