Technical Analysis of GBP/USD for January 8, 2021

Technical Market Outlook:

The GBP/USD pair moved lower towards the intraday support located at the level of 1.3540 and tested it three times already. Nevertheless, the consolidation in a narrow range continues after the 50% pull-back towards the level of 1.3540 was done. Please notice, that one of the candles at the recent top is a Doji candle, which indicates a possible termination of the up trend. 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 located at 1.3540 might trigger another the pull-back or even a 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