Technical Market Outlook:

The GBP/USD pair has broken above the weekly high and made a new swing high at the level of 1.2443 and is currently consolidating the gains ahead of Bank of England interest rate decision. The nearest technical support is still seen at 1.2294, so in a case of an unexpected breakout lower, the next target for bears is seen at 1.2106 (7th December low). The momentum is positive and quite strong (67 points on the daily time frame chart), so odds fro a breakout continuation to the upside are high. The next target for bulls is located at the level of 1.2659.

Weekly Pivot Points:

WR3 - 1.22823

WR2 - 1.22537

WR1 - 1.22388

Weekly Pivot - 1.22251

WS1 - 1.22102

WS2 - 1.21965

WS3 - 1.21679

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. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. 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).