Technical Market Outlook:

The GBP/USD pair has tried to bounce towards the 100 MA seen at 1.2111, but the bounce was capped at 1.2084. The level of 1.2001 will now act as a technical support for the market and the bears will now continue to drop towards this level. The technical resistance is seen at the level of 1.2146, just above the 100 MA. The momentum had bounce from the extremely oversold conditions and is currently located above the fifty level, so the short-term outlook remains bullish. Downward move is possible only if the technical support located at 1.1990 is clearly violated.

Weekly Pivot Points:

WR3 - 1.21447

WR2 - 1.21098

WR1 - 1.20893

Weekly Pivot - 1.20749

WS1 - 1.20544

WS2 - 1.20400

WS3 - 1.20051

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 had been broken, so the next target is 61% Fibonacci retracement level (1.2760). On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong and the recent move up is still being seen as the upwards correction during the down trend. 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).