Technical analysis of GBP/USD for January 11, 2021
- British Pound / U.S. Dollar
- Chart : One-hour
- Pivot : 1.3565
The GBP/USD pair at first tried to rally a bit during the course of the week but gave back the gains rather quickly, it closed at the key level 1.3565.
We will see a lot of news based around the British pound due to the lock down in that country, and of course the mutant variation of the Coronavirus (COVID-19).
The GBP/USD pair continues to struggle to reclaim above the 1.3565 level and has reversed back under the big figure and towards 1.3703.
Further close above the high end may cause a rally towards 1.3565 on the 4-Hour chart . Nonetheless, the weekly resistance level and zone should be considered.
The GBP/USD pair continued to move downwards from the level of 1.3705 to the bottom around 1.3565.
Also, it should be noted that the market opened above the weekly pivot point (1.3565).
Today, the first resistance level is seen at 1.3643 followed by 1.3703, while daily support 1 is seen at 1.3493.
Last week, the GBP/USD pair broke resistance which turned to strong support at 1.3493.
Right now, the pair is trading above this level (1.3493). It is likely to trade in a higher range as long as it remains above the support (1.3493) which is expected to act as major support today.
This would suggest a bullish market because the moving average (100) is still in a positive area and does not show any signs of a trend reversal at the moment.
Amid the previous events, the GBP/USD pair is still moving between the levels of 1.3493 and 1.3703, so we expect a range of 210 pips in coming three ays.
Therefore, the major support can be found at 1.3493 providing a clear signal to buy with a target seen at 1.3643.
If the trend breaks the minor support at 1.3643, the pair will move upwards continuing the bearish trend development to the level of 1.3703 in order to test the daily resistance 2.
Overall, we still prefer the bullish scenario which suggests that the pair will stay above the zone of 1.3643.
- On the short term
- Chart : 30-minute
The GBP/USD pair continues moving in a bullish trend from the support levels of 1.3532 and1.3493.
Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
The bias remains bullish in the nearest term testing 1.3638 and 1.3703.
Immediate resistance is seen around 1.35 65 levels, which coincides with the weekly pivot.
Moreover, the moving average (100) starts signaling an upnward trend.
Therefore, the market is indicating a bullish opportunity above 1.3532 and1.3493. Hence, it will be good to buy above the region of 1.3532 and/or 1.3493 with the first target of 1.3638. It will also call for an uptrend in order to continue towards 1.3703. The strong weekly resistance is seen at 1.3750.
- Uptrend scenario (Bullish) :
An uptrend will start as soon, as the market rises above support levels of 1.3532 and1.3493, which will be followed by moving up to resistance level 1.3638.
The material has been provided by InstaForex Company – www.instaforex.com