FX.co ★ Technical Analysis of GBP/USD for February 8, 2021

Technical Market Outlook:

The GBP/USD pair has quickly bounced from the level of 1.3565 in impulsive fashion. Currently, the market is trading around the level of 1.3733, which is only 24 pips away from the supply zone located between the levels of 1.3757 - 1.3779. The momentum on the H4 time frame chart is strong and positive, but the market conditions are about to hit the overbought levels. Only a sustained breakout above the level of 1.3779 would open the road towards the next target seen at the level of 1.3889.

Weekly Pivot Points:

WR3 - 1.4004

WR2 - 1.3871

WR1 - 1.3816

Weekly Pivot - 1.3685

WS1 - 1.3620

WS2 - 1.3497

WS3 - 1.3434

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 1.3756 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.