FX.co ★ Technical Analysis of GBP/USD for May 4, 2021

Technical Market Outlook:

The GBP/USD pair has been rejected from the supply zone located between the levels of 1.3965 - 1.4000 and retraced 61% of the last wave up. The market has bounced from he level of 1.3797 and is currently trading in the middle of the range. The momentum is strong and positive, so another wave up above the level of 1.4000 is still on table, because the move down is in three waves ABC. The local technical support is located at the level of 1.3807. Any violation of the swing high at the level of 1.4007 will open the road towards the level of 1.4080 as a next target for bulls.

Weekly Pivot Points:

WR3 - 1.4073

WR2 - 1.4024

WR1 - 1.3899

Weekly Pivot - 1.3849

WS1 - 1.3725

WS2 - 1.3678

WS3 - 1.3573

Trading Recommendations:

The GBP/USD pair keeps developing the up trend and bulls are back inside the main ascending channel. The recent top was made at the level of 1.4224 and this was the higher high 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 1.4374.