Technical Analysis of GBP/USD for October 28, 2021

Technical Market Outlook

The GBP/USD pair has reversed sharply from the level of 1.3708, which is the technical support for bulls. The momentum is still negative and the market conditions are coming off the overbought levels, so the bearish pressure intensify as well. The immediate technical support is seen at the level of 1.3708, but if violated, then the next target for bears is located at 1.3673. The nearest technical resistance is located at 1.3763 and 1.3790. The larger time frame trend remains up and the bulls have a chance to make a Bullish Engulfing candlestick pattern at the daily time frame chart.

Weekly Pivot Points:

WR3 - 1.3933

WR2 - 1.3884

WR1 - 1.3802

Weekly Pivot - 1.3757

WS1 - 1.3683

WS2 - 1.3629

WS3 - 1.3554

Trading Outlook:

The up trend on a larger time frame charts is being continued, but only a sustained breakout above the level of 1.4000 would improve the outlook to more bullish with a target at 1.4200. 100 DMA is located at the level of 1.3792 and 200 DMA is seen at 1.3846.