Technical Analysis of GBP/USD for January 18, 2021

Technical Market Outlook:

The GBP/USD pair had tested the recent swing high located at the level of 1.3698, but no breakout higher occurred and the market reversed towards the level of 1.3624. This level had been violated as well and new low was made at the level of 1.3556 (at the time of writing this analysis). The next target for bears is seen at the level of 1.3450, which is the recent swing low. The weak and negative momentum supports the short-term bearish outlook for Cable.

Weekly Pivot Points:

WR3 - 1.3982

WR2 - 1.3839

WR1 - 1.3718

Weekly Pivot - 1.3586

WS1 - 1.3464

WS2 - 1.3322

WS3 - 1.3204

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

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