Technical Market Outlook:

The GBP/USD pair had made the last swing low at the level of 1.2308 as the market is still under the bearish pressure, but the bulls have managed to retrace 61% of the last wave down and hit the level of 1.2540. The market is trading above the 50 and 100 MA already. The intraday technical support is located at 1.2517. The momentum is strong and positive on the H4 time frame chart, which supports the bullish short-term outlook for GBP, however the extremely overbought market conditions had been hit, so the pull-back might occur any time soon.

Weekly Pivot Points:

WR3 - 1.23581

WR2 - 1.23505

WR1 - 1.23473

Weekly Pivot - 1.23429

WS1 - 1.23397

WS2 - 1.23353

WS3 - 1.23277

Trading Outlook:

A Bearish Engulfing candlestick pattern on the Weekly time frame chart 100 pips away from the 61% Fibonacci retracement located at the level of 1.2778 might indicate the corrective cycle to the upside had been terminated. Any sustained breakout below the technical support at 1.2444 will be the first indication of stronger bearish pressure.