02.01.202014:51 Forex Analysis & Reviews: Technical analysis of GBP/USD for January 02, 2019

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Overview:

The GBP/USD pair faced resistance at the level of 1.3281, while minor resistance is seen at 1.3204. Support levels found at the prices of 1.3137 and 1.3048. Pivot point has already set at the level of 1.3137.

Undoubtedly, the GBP/USD pair is still moving around the key level at 1.3137, which represents a daily pivot in the H1 time frame at the moment.

Last week, the GBP/USD pair continued moving upwards from the level of 1.3137. The pair rose to the top around 1.3281 from the level of 1.3137 (coincides with the ratio of 61.8% Fibonacci retracement).

Resulting from, the GBP/USD pair broke resistance, which turned into strong support at the level of 1.3137. The level of 1.3137 is expected to act as the major support today.

We expect the GBP/USD pair to continue moving in the bullish trend towards the target level of 1.3284.

On the downtrend: If the pair fails to pass through the level of 1.3284, the market will indicate a bearish opportunity below the level of 1.3284.

As a consequence of the market will decline further to 1.3137 and 1.3049 to return to the daily support.

Additionally, a breakout of that target will move the pair further downwards to 1.2994.

By contrast, if a breakout happens at the support level of 1.3281, then this scenario may be invalidated.

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