Technical Market Overview:

The GBP/USD pair has broken back below the level of 1.2480 after the failed rally to the level of 1.2556. The descending trendline breakout was very short-lived and now the bears are in control of the market. After the 1.2480 support is violated, the next target is seen at the level of 1.2432 and then at the level of 1.2381. The weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:

WR3 - 1.2789

WR2 - 1.2679

WR1 - 1.2588

Weekly Pivot - 1.2485

WS1 - 1.2394

WS2 - 1.2201

WS3 - 1.1089

Trading Recommendations:

The best strategy for the current market conditions is to follow the larger timeframe trend. The larger time frame trend is still down and there are no signs of any trend reversal. The key long-term technical support at the level of 1.2420 has been violated and the next target for bears is seen at the level of 1.1983