Technical Analysis of GBP/USD for May 27, 2021

Technical Market Outlook:

The GBP/USD pair moved out of the narrow zone between the levels of 1.4119 - 1.4223 and hit the level of 1.4092, which is the 61% Fibonacci retracement of the last wave up. The technical support is seen at the level of 1.4077 and if violated, then a down cycle might extend towards the level of 1.4000. For now the bears have manage to retrace 38% of the last swing up and are trying to bounce from the level of 1.4145 towards 1.4165. The momentum remains neutral in slightly overbought market conditions.

Weekly Pivot Points:

WR3 - 1.4370

WR2 - 1.4303

WR1 - 1.4219

Weekly Pivot - 1.4140

WS1 - 1.4061

WS2 - 1.3988

WS3 - 1.3910

Trading Recommendations:

The daily time frame chart show the breakout above the trend line resistance and a new swing high above the recent consolidation zone located around 1.4000. The momentum is strong and positive, so the up trend can be continued towards the next long-term target located at the level of 1.4222 (high from 24.02.2021).

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

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