FX.co ★ Technical Analysis of GBP/USD for January 12, 2022

Technical Market Outlook

The GBP/USD pair has made a new swing high at the level of 1.3645 (at the time of writing the article) and continues to trade higher. The next target for bulls is located at 1.3673 and might be hit very soon. The immediate technical support is seen at 1.3604 and 1.3567. 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 nearest technical support to test it might occur any time soon. Please keep an eye on the upward channel breakout to the downside as the first clue of the top for this market.

Weekly Pivot Points:

WR3 - 1.3817

WR2 - 1.3714

WR1 - 1.3658

Weekly Pivot - 1.3540

WS1 - 1.3488

WS2 - 1.3377

WS3 - 1.3322

Trading Outlook:

To corrective movement to the upside is continued. The down trend long-term target is located at 1.2668 ( September 2020 lows) as long as the level of 1.3604 is not clearly broken (daily candle close far away from this level).