FX.co ★ Technical analysis of GBP/USD for January 26, 2021

Overview :

The trend of the GBP/USD into the close is likely to be determined by trader reaction to the pivot point at 1.3605 (horizontal red line).

The Pound is trading lower against the U.S. Dollar rate in the session on tuesday, it also should be noted that the trend is still trading above the zone of 1.3519 - 1.3605.

The GBP/USD pair continues to move upwards from the level of 1.3605. Today, the first support level is currently seen at 1.3605, the price is moving in a bullish channel now.

Furthermore, the price has been set above the strong support at the level of 0.6613, which coincides with the 38.2% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend.

According to the previous events, we expect the GBP/USD pair to trade between 1.3519 and 1.3745.

So, the support stands at 1.3605, while daily resistance is found at 1.3695.

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.3605.

In other words, buy orders are recommended above the spot of 1.3605 with the first target at the level of 1.3695 ; and continue towards 1.3745.

However, if the GBP/USD pair fails to break through the resistance level of 1.3745 today, the market will decline further to 1.3519.