Technical Market Outlook:

The GBP/USD pair has made another higher high at the level of 1.2422, but on the H4 time frame chart the rally has ended with a Pain Bar candlestick made in extremely overbought market conditions. The market reversed and broke below the intraday technical support is seen at 1.2301 which will now act as intraday technical resistance. Any breakout below the key technical support levels ( 1.2181 - 1.2179 zone) will accelerate the correction pace towards the lower levels like 100 MA located at 1.2189. The weak and negative momentum on the H4 time frame chart support the short-term bearish outlook for GBP/USD.

Weekly Pivot Points:

WR3 - 1.23575

WR2 - 1.23233

WR1 - 1.23029

Weekly Pivot - 1.22891

WS1 - 1.22687

WS2 - 1.22549

WS3 - 1.22207

Trading Outlook:

So far the level of 1.2443 was too strong resistance to break through, so a potential Double Top price pattern is still in play. Moreover, the level of 1.2297 which is 50% Fibonacci retracement level of the last big wave down had been hit, so the bears resumed the down trend. The down trend was confirmed with the level of 1.2089 breakout (50 WMA), so now the potential target for bears is seen at the level of 1.1840 or below.