20.01.202112:54 Forex Analysis & Reviews: Technical analysis of GBP/USD for January 20, 2021

Overview :

• Pivot : 1.3653.

The GBP/USD pair can still form an ascending impulse, it continues to rise upwards. The major support is seen at 1.3611 which coincides with the ratio of 61.8% Fibonacci Expansion. According to the main scenario, it may start forming correctional structures.

Today, we foresee the price to move towards the level of 1.3710 and then reach a new maximum again around the price of 1.3750. Please, note that the strong resistance stands at the level of 1.3750.

If the price breaks the level of 1.3710, we expect potential testing of 1.3750. The current ascending structure implies that the market may reach the level of 1.3800.

The bullish outlook remains the same as long as the RSI indicator is pointing to the upside on the four-hour chart.

In this area, the trend is challenging a major resistance level. The ascending impulse is strong enough to buy above the support of 1.3710.

Therefore, the price is expected to reach a high once again. It is rather gainful to buy at 1.3710 with the targets at 1.3750 and 1.3800.

So, it is recommended to place take profit at the price of 1.3800 as the third target today.

On the contrary, stop loss should be placed at the price of 1.3611 (below the daily support).

Conclusion :

• The depicted resistance level of 1.3611 acted as an important key level offering a valid buuy entry. Hence, buy above the 1.3611 level with the targets of 1.3750, 1.3800in coming 48 hours. Conversely, stop loss should be placed below the high reached near the second support (1.3611). Buy Stop and Sell Stop are more precise to place your orders that what you will see in our weekly strategies.

Alternative scenario :

• The breakdown of 1.3611 will allow the pair to go further down to the levels of 1.3511 and 1.3450 (bottom).