02.01.202009:08 Forex Analysis & Reviews: Technical analysis of GBP/USD for 02/01/2020:

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Technical Market Overview:

The GBP/USD pair has broken out form the short-term channel around the level of 1.3025 and is rallied towards the 61% of the Fibonacci retracement of the last wave down located at the level of 1.3280, where it was capped. Currently, the market is trading inside of a narrow zone located between the levels of 1.3209 - 1.3280. Please notice, the strong and positive momentum which is behind the move up, but please notice as well the overbought market conditions that may lead to the corrective cycle. The nearest technical support is located at the level of 1.3031- 1.3121.

Weekly Pivot Points:

WR3 - 1.3395

WR2 - 1.3256

WR1 - 1.3182

Weekly Pivot Point - 1.3041

WS1 - 1.2971

WS2 - 1.2819

WS3 - 1.2756

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509.

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