Technical analysis of GBP/USD for February 03, 2021

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Overview :

The GBP/USD pair Analysis - Reviews :

The effects of Brexit and the lockdown inside the country due to the Coronavirus (COVID-19) pandemic continue to affect the GBP/USD pair. So, British pound remains under pressure against U.S. Dollar ($).

But technically, intraday bias in the GBP/USD pair remains uptrend for now and further rise is still in favor with 1.3523 support intact.

The GBP/USD pair managed to get above the support levels of 1.3523, 1.3568 and 1.3604.

The GBP/USD pair made an attempt to develop additional upside momentum, it's trying to succeed to get above the area of 1.3523 - 1.3568.

On the upside, the GBP/USD pair needs to get back above 1.3640 (pivot point) to have a chance to develop upside momentum in the near term.

If the GBP/USD air settles above this level (1.3640), it will head towards the next resistance at 1.3710.

A successful test of the resistance at 1.3758 will open the door to the test of the next resistance level which is located near the recent highs at 1.3810.

Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside.

Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily pivot point (1.3640) in the coming hours.

The GBP/USD pair will demonstrate strength following a breakout of the high at 1.3640. Consequently, the market is likely to show signs of a bullish trend.

Buy orders are recommended above 1.3640 with the first target at 1.3758. Then, the pair is likely to begin an ascending movement to 1.3810 mark and further to 1.3850 levels.

The level of 1.3810 will act as strong resistance, and the double top is already set at 1.3758.

On the downside, however, break of 1.3523 support will now suggest short term topping, on bearish divergence condition in four-hour MACD. Intraday bias will be turned back to the downside for deeper pull back.

If this attempt is successful, the GBP/USD pair will move towards the next support level which is located at 1.3400. This support level has been tested during yesterday's trading session and set its strength.

Additionally, the MACD starts signaling a downward trend. As a result, if the GBP/USD pair is able to break out the first support at 1.3523, the market will decline further to 1.3400 in order to test the weekly support 2.

Consequently, the market is likely to show signs of a bearish trend. Hence, it will be good to sell below the level of 1.3600 with the first target at 1.3523 and further to 1.3400.

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The material has been provided by InstaForex Company - www.instaforex.com

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