FX.co ★ Technical Analysis of GBP/USD for January 3, 2022

Technical Market Outlook

The GBP/USD pair has broken above the Novembers high located at the level of 1.3516 and made a new swing high at the level of 1.3549. The immediate technical support is seen at the level of 1.3471 and 1.3428. Moreover, the market keeps bouncing up from the short-term trend line support as well. 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 - 1.3658

WR1 - 1.3620

Weekly Pivot - 1.3485

WS1 - 1.3451

WS2 - 1.3393

WS3 - 1.3287

Trading Outlook:

Despite the recent breakout above the level of 1.3514, the GBP/USD is still in the down trend as the 61% Fibonacci retracement of the last wave down hasn't been event tested yet. The market is in the down trend with a long-term target located at 1.2668 ( September 2020 lows) as long as the level of 1.3579 is not clearly broken.