Technical Analysis of GBP/USD for January 26, 2021

Technical Market Outlook:

The GBP/USD pair keeps moving down after the Bearish Engulfing candlestick pattern was made at the level of 1.3708. The bearish pressure intensify and the intraday technical support located at the level of 1.3624 had been broken already. The next target for bears is seen at the level of 1.3519. The market is coming off the overbought conditions and the momentum is weak and negative already, pointing down. The key technical support is seen at the level of 1.3428.

Weekly Pivot Points:

WR3 - 1.4011

WR2 - 1.3877

WR1 - 1.3788

Weekly Pivot - 1.3646

WS1 - 1.3564

WS2 - 1.3416

WS3 - 1.3342

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 1.3744 and this was the higher close in over two years. 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