Technical Analysis of GBP/USD for January 12, 2021

Technical Market Outlook:

The GBP/USD pair is back trading inside of the descending channel after the bounce from the lower channel line around the level of 1.3449. The next target for bears is seen at the level of 1.3634 and if the price will hit this level, then it will trade out of the channel. The momentum is positive and the market is bouncing from the oversold conditions, so traders should expect the bounce to continue. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.3811

WR2 - 1.3757

WR1 - 1.3642

Weekly Pivot - 1.3588

WS1 - 1.3474

WS2 - 1.3415

WS3 - 1.3307

Trading Recommendations:

The GBP/USD pair keeps developing the up trend and the trigger for this trend was the breakout above the level or 1.3518 on the weekly time frame chart. The recent top was made at the level of 1.3702. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370.

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The material has been provided by InstaForex Company - www.instaforex.com