Technical Analysis of GBP/USD for February 2, 2021

Technical Market Outlook:

The GBP/USD pair keeps trading inside of the narrow zone located between the levels of 1.3624 - 1.3757. The bearish pressure has increased and the next target for them is the intraday technical support located at the level of 1.3624. Please pay attention to the recent lower low located at the level of 1.3609 as well. The market is coming off the overbought conditions and the momentum is weak and negative, pointing down. The key mid - term technical support is seen at the level of 1.3428, but please pay attention to any breakout below the trend line support around the level of 1.350 first. This might be the first indication of a potential move lower.

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.