Technical Analysis of GBP/USD for January 25, 2021

Technical Market Outlook:

The GBP/USD pair keeps moving up after the bounce from the level of 1.3624 as the bulls are not giving up just yet. The market trades closer to the last week high located at the level of 1.3744 and due to the strong and positive momentum there is still a chance for another wave up if this high is clearly violated. The next target would have been at the level of 1.3779 and even at 1.3889. Nevertheless, the current market conditions are overbought, but as long as the price will stay above the technical support at 1.3624, the up wave might develop later in the day.

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

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