FX.co ★ Technical Analysis of GBP/USD for February 2, 2022

Technical Market Outlook

The GBP/USD pair has broken above the short-term trend line resistance and is testing the technical resistance located at 1.3523. If this level is broken, then the next target is seen at 1.3572 and 1.3648. The momentum is strong and positive and the market conditions on the H4 time frame chart favor the bulls. On the larger time frame charts, like daily and weekly, the up trend is still being continued, however the momentum is not that strong anymore. As long as the market trades above the level of 1.3357, which is the key short-term technical support level for bulls, the odds for the test of the swing high at 1.3747 are high.

Weekly Pivot Points:

WR3 - 1.3701

WR2 - 1.3601

WR1 - 1.3492

Weekly Pivot - 1.3428

WS1 - 1.3289

WS2 - 1.3215

WS3 - 1.3085

Trading Outlook:

The up trend is being continued, but the up move might be terminated due to the Shooting Star candlestick pattern made at the daily time frame chart at the level of 1.3717. The overall move from the level of 1.3170 looks like a V-shape reversal pattern, so in the long-term the trend might be about to change from the multi-month down trend to the up trend. Please keep an eye on the level of 1.3500, because any sustained breakout below this level will change the outlook back to the bearish again.