FX.co ★ Technical Analysis of GBP/USD for February 23, 2022

Technical Market Outlook

The GBP/USD bulls had been rejected from the supply zone again and that was their 5th attempt to break through the zone located between the levels of 1.3627 - 1.3660. The immediate technical support is seen at 1.3598, 1.3566 and 1.3488. The bulls keep trying to move higher, because the breakout above the level of 1.3660 opens the road towards the swing high located at 1.3747, however the overbought market conditions and increased bearish activity around this zone indicate a retreat towards the consolidation zone again. The key technical support for the short-term is located at 1.3488.

Weekly Pivot Points:

WR3 - 1.3817

WR2 - 1.3724

WR1 - 1.3655

Weekly Pivot - 1.3572

WS1 - 1.3510

WS2 - 1.3417

WS3 - 1.3348

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.