FX.co ★ Technical analysis of GBP/USD for January 28, 2022

The GBP/USD pair has faced strong resistances at the levels of 1.3460 because support had become resistance.

So, the strong resistance has been already formed at the level of 1.3460 and the pair is likely to try to approach it in order to test it again.

However, if the pair fails to pass through the level of 1.3460, the market will indicate a bearish opportunity below the new strong resistance level of 1.3460 (the level of 1.3460 coincides with a ratio of 50% Fibonacci).

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100) and (50).

Thus, the market is indicating a bearish opportunity below 1.3460 for that it will be good to sell at 1.3460 with the first target of 1.3353.

It will also call for a downtrend in order to continue towards 1.3309. The daily strong support is seen at 1.3309.

However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.3528.