Technical Overview:

After the strong rally, the GBP/USD pair has settled down a little and begun to consolidate the recent gains in a narrow horizontal. The technical resistance zone located between the levels of 1.2652 - 1.2668 has been violated and the price is now back in the zone again. The local high was made at the level of 1.2725, but the momentum is strong and positive so there is a possibility of another leg up towards the technical resistance located between the levels of 1.2746 - 1.2761.

Weekly Pivot Points:

WR3 - 1.2846

WR2 - 1.2797

WR1 - 1.2673

Weekly Pivot - 1.2620

WS1 - 1.2493

WS2 - 1.2439

WS3 - 1.2301

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and corrections should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.