For Traders

Analytical Reviews

Technical analysis

28.01.202211:30 Forex Analysis & Reviews: Technical Analysis of GBP/USD for January 28, 2022

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.

Technical Market Outlook

The GBP/USD pair has broken through the 61% Fibonacci retracement located at 1.3392 and new low was made at 1.3364. The key technical support is seen at the level of 1.3352. This is the key short-term technical support level for bulls and if there is no strong response from them, then the lower level will be hit (1.3370 and 1.3352). The momentum is weak and negative and the market conditions on the H4 time frame chart are still hovering around the extremely oversold conditions. On the larger time frame charts, like daily and weekly, the up trend is still being continued, however the momentum is not that strong anymore.

Weekly Pivot Points:

WR3 - 1.3781

WR2 - 1.3725

WR1 - 1.3618

Weekly Pivot - 1.3581

WS1 - 1.3476

WS2 - 1.3437

WS3 - 1.3329

Trading Outlook:

The up trend is being 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 overall move from the level of 1.3170 looks like a V-shape reversal pattern, so in the long-term the trend might be about to change from the multi-month down trend to the up trend. Please keep an eye on the level of 1.3500, because any sustained breakout below this level will change the outlook back to the bearish again.

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.