FX.co ★ Technical analysis of GBP/USD for January 29, 2021

Overview :

The trend of GBP/USD pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 1.3745 and 1.3629.

Thus, it is recommended to be careful while making deals in these levels because the prices of 1.3745 and 1.3629 are representing the resistance and support respectively.

Yesterday, the GBP/USD pair dropped sharply from the level of 1.3745 towards 1.3672. Now, the price is set at 1.3682.

On the M15 chart, the resistance of GBP/USD pair is seen at the level of 1.3701 and 1.3745.

It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.3745 and 1.3627 in coming hours.

Moreover, the price spot of 1.3701/1.3745 remains a significant resistance zone. Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective.

The trend will be probbaly indicate the bearish opportunity below 1.3701, sell below 1.3701 with the first target at 1.3629 in order to test yesterday's bottom.

Also, it should be noted that the trend is still calling for a strong bearish market from the spot of 1.3701 - 1.3745 (- sellers are asking for a high price).

Additionally, if the GBP/USD pair is able to break out the bottom at 1.3629, the market will decline further to 1.3603 so as to test the weekly support 2. Also, it should be noticed that support 2 is seen at the level of 1.3603.