Technical Market Outlook:

The GBP/USD pair has hit the target level located at 1.2293 as expected and is currently consolidating the recent gains. The level of 1.2293 is the 50% Fibonacci retracement of the last big cycle down, so it is a key level for bulls. The intraday technical support is seen at 1.2186 and 1.2161. The market conditions are now extremely overbought, so a pull-back towards the support might be triggered anytime.

Weekly Pivot Points:

WR3 - 1.21733

WR2 - 1.21168

WR1 - 1.20955

Weekly Pivot - 1.20603

WS1 - 1.20390

WS2 - 1.20038

WS3 - 1.19473

Trading Outlook:

The bulls are temporary in control of the market and the 50% Fibonacci retracement of the last big wave down located at 1.2293 might be tested soon. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. In order to terminate the down trend, bulls need to close the weekly candle above the level of 1.2275 (swing high from August 10th).