Technical Market Outlook

The GBP/USD pair has bounced from the level of 1.3194 after the trend line had been tested from above. As the volatility increases ahead of Bank of England interest rate decision, the bulls are trying to continue the bounce above the level of 1.3295. The key intraday technical support is located at the level of 1.3240 and the technical resistance at the level of 1.3295. On the other hand, any violation of the trend line again would result in a sell-off acceleration towards the level of 1.3194 and 1.3166. Only a sustained breakout above the 1.3370 - 1.3352, key short-term resistance zone, would have change the outlook to more bullish the nearest future.

Weekly Pivot Points:

WR3 - 1.3422

WR2 - 1.3360

WR1 - 1.3322

Weekly Pivot - 1.3246

WS1 - 1.3204

WS2 - 1.3123

WS3 - 1.3081

Trading Outlook:

The down trend on a larger time frame charts is being continued, but only a sustained breakout above the level of 1.3514 would improve the outlook to more bullish with a target at 1.4200. 200 WMA had been violated already, so the market is in the down trend with a long-term target located at 1.2668 ( September 2020 lows).