Technical Analysis of GBP/USD for January 22, 2021

Technical Market Outlook:

The GBP/USD pair has made a new swing high at the level of 1.3744. After the high was made, the market consolidated for some short time and then pulled-back again towards the level of 1.3667. Only a sustained breakout above the level of 1.3744 will trigger another wave up, so the bears continue to defend the range located between the levels of 1.3744 - 1.3667. The strong and positive momentum supports the short-term bullish outlook despite the overbought market conditions.

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 1.3744. 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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