01.06.202211:16 Forex Analysis & Reviews: Technical Analysis of GBP/USD for June 1, 2022

Technical Market Outlook:

The GBP/USD pair has failed to break above the key supply zone located between the levels of 1.2615 - 1.2697. The local high was made at the level of 1.2665 and the bulls keep pushing higher, however they fell out of the channel already. Any violation of this supply zone would change the short-term outlook to more bullish as the market could target even the level of 1.3000 again. The strong and positive momentum support the short-term bullish outlook for Cable, however the market conditions look overbought. As long as the market trades above the level of 1.2466 and is still inside the ascending channel, there are still chances for the breakout higher. The key technical resistance level is located at 1.2697.

Weekly Pivot Points:

WR3 - 1.2895

WR2 - 1.2786

WR1 - 1.2716

Weekly Pivot - 1.2588

WS1 - 1.2516

WS2 - 1.2399

WS3 - 1.2312

Trading Outlook:

The price broke below the level of 1.3000 six weeks ago, so the bears enforced and confirmed their control over the market in the long term. The Cable is way below 100 and 200 WMA , so the bearish domination is clear and there is no indication of trend termination or reversal. The bulls are now trying to start the corrective cycle, which is welcome after eight weeks of the down move. The next long term target for bears is seen at the level of 1.1989. Please remember: trend is your friend.