Technical Market Outlook:

The GBP/USD pair had made a new local high at the level of 1.2287,and then reversed lower after the Pin Bar candlestick pattern was made at the top of the move. The intraday technical support is still located at the level of 1.2142 and the intraday technical resistance is located at 1.2336 (swing high from October 11th).The bears managed to push the price below 50 and 100 MA on the H4 time frame chart. Moreover, the momentum on the H4 time frame chart has come off the extremely overbought conditions, so the pull-back or reversal might be still in progress. Please notice, that the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart.

Weekly Pivot Points:

WR3 - 1.21969

WR2 - 1.21748

WR1 - 1.21618

Weekly Pivot - 1.21527

WS1 - 1.21397

WS2 - 1.21306

WS3 - 1.21085

Trading Outlook:

The bulls were rejected at the key technical resistance located at the level of 1.3163 and a breakout above this level is needed to extend the up trend towards the last Weekly swing high seen at 1.4248. The weekly time frame chart shows the Bearish Engulfing candlestick pattern was made during the breakout attempt above the 1.3163, so now the bears are in charge of the market. Any sustained breakout below the technical support seen at the level of 1.1802 would dramatically increase the chances of another leg down towards the level of 1.1494.