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

Pound pushing higher againTechnical Market Outlook

The GBP/USD pair has been seen moving up towards the Novembers high located at the level of 1.3516 and some Pin Bars had been made around this level as the bears intensify the pressure as well. The level of 1.3516 is the swing high level and any violation of this level would be considered bullish in the near term. The immediate technical support is seen at the level of 1.3471 and 1.3428. The strong and positive momentum support the short-term bullish outlook for GBP, however, the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back towards the level of 1.3410 is welcome.

Weekly Pivot Points:

WR3 - 1.3774

WR2 - 1.3612

WR1 - 1.3524

Weekly Pivot - 1.3343

WS1 - 1.3248

WS2 - 1.3073

WS3 - 1.2991

Trading Outlook:

The down trend on a larger time frame charts is being continued, but only a sustained breakout above the level of 1.3514 would improve the outlook to more bullish with a target at 1.4200. 200 WMA had been violated already, so the market is in the down trend with a long-term target located at 1.2668 ( September 2020 lows).