For Traders

Analytical Reviews

Technical analysis

24.02.202113:26 Forex Analysis & Reviews: GBP/USD Hot Forecast for 24 February, 2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP continues to advance strongly against major currencies and that strength will likely persist medium term.
However, there is a near-term risk of a correction, with GBP/USD overbought on the hourly chart.

GBP/USD STRENGTH TO CONTINUE, CORRECTION IS POSSIBLE

GBP/USD is trading close to 1.4200, reversing towards the three-year high near 1.4240. GBP continues to advance strongly against major currencies and that strength will likely persist in the medium term. The US dollar is losing ground once again amid risk-recovery. The UK aims for faster vaccinations to regain economic traction before time.

As the chart of GBP/USD shows, the pair is now hovering around overbought levels, with the relative strength index (RSI) close to the 70 mark that indicates an overbought market. As the chart also shows, there was a brief spike higher in GBP/USD in Asian trading Wednesday but no obvious reason why it happened.

Sustained break of highs marked during March 2018, around 1.4240 becomes necessary to target January 2018 tops and the yearly peak of 2018, respectively near 1.4345 and 1.4375. Meanwhile, pullback moves may eye the 1.4000 threshold but remain less strong above the three-week-old support line near 1.3950-45.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.