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17.01.202210:55 Forex Analysis & Reviews: Technical Analysis of GBP/USD for January 17, 2022

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Technical Market Outlook

The GBP/USD pair has made a new swing high at the level of 1.3747, pulled-back lower and is currently testing the lower channel line around the level of 1.3673. The next target for bulls is located at 1.3763 and the immediate technical support is seen at 1.3708 and 1.3673. The strong and positive momentum support the short-term bullish outlook for GBP, however, the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back towards the nearest technical support to test it might occur any time soon. Please keep an eye on the upward channel breakout to the downside as the first clue of the top for this market.

Weekly Pivot Points:

WR3 - 1.3997

WR2 - 1.3859

WR1 - 1.3773

Weekly Pivot - 1.3654

WS1 - 1.3552

WS2 - 1.3440

WS3 - 1.3332

Trading Outlook:

To corrective movement to the upside is continued, but the up move might be terminated due to the Shooting Star candlestick pattern made at the daily time frame chart at the level of 1.3717. The down trend long-term target is located at 1.2668 ( September 2020 lows) as long as the level of 1.3604 is not clearly broken (daily candle close far away from this level).

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