FX.co ★ Technical analysis of GBP/USD for February 08, 2021

Overview :

The GBP/USD pair's upside momentum has continued road ahead as 1.3720, because the level of 1.3775 challenge the bulls targeting the 1.3757 tour-figure.

Some unifications could be seen but further rally is expected with 1.3684 support intact. On the upside, break of 1.3757 will extend the up trend from the spot of 1.3684/1.3757 towards to objectives of 1.3800 and 1.3830.

The GBP/USD pair continues to move upwards from the level of 1.3684. Today, the first support level is currently seen at 1.3684, the price is moving in a bullish channel now.

Furthermore, the price has been set above the strong support at the level of 1.3684, which coincides with the 61.8% Fibonacci retracement level.

This support has been rejected several times confirming the veracity of an uptrend this week. According to the previous events, we expect the GBP/USD pair to trade between 1.3684 and 1.3830.

So, the support stands at 1.3684, while weekly resistance is found at 1.3830.

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.3684.

In other words, buy orders are recommended above the spot of 1.3684 with the first target at the level of 1.3800; and continue towards 1.3830.

On the other hand, if the GBP/USD pair fails to break through the resistance level of 1.3757 today, the market will decline further to 1.6338.

The price area of 1.3757 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.3757 is not broken.

On the downside, break of 1.3684 support will turn bias to the downside for deeper correction instead.