US dollar weakness persists on Wednesday and is helping GBP/USD continue its uptrend. Currently, the pair is trading at 1.3571, prices at time of writing. The pair remains in the high zone, with the bullish tone firm, approaching the level of 61.8% Fibonacci which could be a reversal zone along with 7/8 Murray.
On January 27, the British pound fell to the area of 3/8 Murray around 1.3366. From this level, GBP/USD began a rebound which is now approaching 7/8 Murray and is showing signs of exhaustion.
From a technical viewpoint, the pound turned bullish with the sustained advance above the 23.6% Fibonacci retracement,4/8 Murray and the 21 SMA, all at the same level, which helped the recovery of the pair.
Currently, GBP/USD is trading above the 200 EMA and above the 6/8 Murray. This is a clear sign that the pound could continue its uptrend towards the level 1.3750.
However, the pound should make a technical correction towards the 200 EMA in order to consolidate and gain momentum for another bullish sequence.
The eagle indicator is giving a bullish signal. It is likely that in the next few hours GBP/USD will reach the resistance zone of 1.3610 for a technical correction.
On the other hand, a pullback to the 61.8% Fibonacci (1.3585) or 7/8 Murray located at 1.3610 will be an opportunity to sell with targets at 1.3549 and 1.3488.
Support and Resistance Levels for February 2 - 3, 2022
Resistance (3) 1.3645
Resistance (2) 1.3610
Resistance (1) 1.3586
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Support (1) 1.3549
Support (2) 1.3518
Support (3) 1.3488
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Scenario
Timeframe H4
Recommendation: sell below
Entry Point 1.3610 or below 1.3586
Take Profit 1.3549 (6/8), 1.3488 (5/8)
Stop Loss 1.3640
Murray Levels 1.3610 (7/8) 1.3549 (6/8) 1.3488(5/8) 1.3427 (4/8)
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