FX.co ★ Technical Analysis of GBP/USD for May 31, 2021

Technical Market Outlook:

The GBP/USD pair has briefly dipped towards the level of 1.4145, which is the 38% Fibonacci retracement of the last wave up. Nevertheless, there was still no important breakout of any key level and the market is still trading inside of the consolidation zone. The key technical support is seen at the level of 1.4077 and if violated, then a down cycle might extend towards the level of 1.4000. For now the bears have manage to retrace 38% of the last swing up and are trying to bounce from the level of 1.4145 towards 1.4165. The momentum remains neutral in slightly overbought market conditions.

Weekly Pivot Points:

WR3 - 1.4370

WR2 - 1.4303

WR1 - 1.4219

Weekly Pivot - 1.4140

WS1 - 1.4061

WS2 - 1.3988

WS3 - 1.3910

Trading Recommendations:

The daily time frame chart show the breakout above the trend line resistance and a new swing high above the recent consolidation zone located around 1.4000. The momentum is strong and positive, so the up trend can be continued towards the next long-term target located at the level of 1.4222 (high from 24.02.2021).