27.01.202113:41 Forex Analysis & Reviews: Technical analysis of GBP/USD for January 27, 2021

Overview :

• The GBP/USD pair could still form an ascending impulse, it continues to rise upwards. The major support is seen at 1.3701 which coincides with the ratio of 61.8% Fibonacci retracement levels.
• Today, we foresee the price to move towards the level of 1.3758 and then reach a new maximum again around the price of 1.3804.
• Please, note that the strong resistance stands at the level of 1.3758. If the price breaks the level of 1.3758, we expect potential testing of 1.3804.
• The current ascending structure implies that the market may reach the level of 1.3850; which coincides with the ratio of 161.8% Fibonacci retracement levels. .
• In this area, the trend is challenging a major resistance level. The ascending impulse is strong enough to buy above the support of 1.3701.
• Therefore, the price is expected to reach a high once again. It is rather gainful to buy at 1.3701 with the targets at 1.3804 and 1.3850.
• So, it is recommended to place take profit at the price of 1.3850 as the second target today.
• On the contrary, stop loss should be placed at the price of 1.3666 (below the daily support). The bullish outlook remains the same as long as the RSI indicator is pointing to the upside on the one-hour chart, because on the whole we remain bullish at present.

Alternative scenario:

• The breakdown of 1.3666 will allow the pair to go further down to the level of 1.3609.
• Any downside pullback from the price of 1.3750 now is normal iin order to make a correction.
• According to the main scenario, it may start forming correctional structures.

Comment :

• The GBP /USD pair had climbed from 1.3609 to 1.3729 since yeterday.
• The strong resistance will be formed at 1.3850.
• Daily pivot is set at 1.3701.
• The market is still indicating a strong bullish trend from the area of 1.3609/1.3701.