Technical analysis of GBP/USD for 28/01/2019:
The projected Fibonacci target has been hit, pullback time now
The GBP/USD pair went up towards the projected target at the level of 1.3175 and even was capable to make a local high at the level of 1.3217. Since then, the pair reversed towards the technical support at the level of 1.3139. This is the nearest technical support, but the key support is the green zone between the levels of 1.3047 - 1.3071, so if this zone is violated, the uptrend might be considered as completed.
Please notice, there is a clear bearish divergence between the price and the momentum, which supports the short term bearish outlook. Nevertheless, the market is still moving inside of the channel and above the long-term trend line support at the level of 1.3000, so the larger time frame trend is still up.
As the projected target was hit, so all the buy orders should be closed now with profit. Traders should observe the market in order to see how it will behave at the technical support levels mentioned above and trend accordingly.
The material has been provided by InstaForex Company - www.instaforex.com