Technical Analysis of GBP/USD for January 5, 2021

Technical Market Outlook:

The GBP/USD pair has made a new local high at the level of 1.3697, which is just two pips higher than 61% Fibonacci expansion of the last wave up. Please notice, that one of the candles is a Doji candle, which indicates a possible termination of the up trend. The level of 1.3624 (intraday support) has been violated already, so the next target for bears is seen at the level of 1.3428. Moreover, the RSI indicator is starting to break down from the neutral level and the market is coming off the overbought conditions. Any violation of the recent local low at 1.3540 might trigger the sell-off.

Weekly Pivot Points:

WR3 - 1.4033

WR2 - 1.3841

WR1 - 1.3765

Weekly Pivot - 1.3599

WS1 - 1.3521

WS2 - 1.3349

WS3 - 1.3262

Trading Recommendations:

The GBP/USD pair might have started a long term up trend and the trigger for this trend was the breakout above the level or 1.3518 on the weekly time frame chart. 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