12.02.202110:50 Forex Analysis & Reviews: Technical Analysis of GBP/USD for February 12, 2021

Technical Market Outlook:

The GBP/USD pair has made a new swing high at the level of 1.3865, but the Pin Bar candlestick made at the top of the rally was an indication of a pull-back. The bears took the control of the market and pushed the price towards the level of 1.3779, which is the key technical support level. Moreover, the price had broken below the short-term trend line support (marked orange on the chart) as well. The momentum on the H4 time frame chart is neutral and pointing down and the market conditions had hit the extremely overbought levels already, so some kind of consolidation or pull-back might take some time. Please notice, that only a sustained breakout above the level of 1.3779 would open the road towards the next target seen at the level of 1.3889, so the bulls can't stop at the current market levels. The level of 1.3757 and 1.3739 will now act as an intraday technical support. There is no indication of the trend reversal so far.

Weekly Pivot Points:

WR3 - 1.4004

WR2 - 1.3871

WR1 - 1.3816

Weekly Pivot - 1.3685

WS1 - 1.3620

WS2 - 1.3497

WS3 - 1.3434

Trading Recommendations:

The GBP/USD pair keeps developing the up trend and the trigger for this trend was the breakout above the level or 1.3518 on the weekly time frame chart. The recent top was made at the level of 1.3756 and this was the higher close in over two years. All the local corrections should be used to open a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370.