{"id":2252,"date":"2021-01-07T10:49:31","date_gmt":"2021-01-07T10:49:31","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2252"},"modified":"2021-01-07T12:01:32","modified_gmt":"2021-01-07T12:01:32","slug":"gbpusd-technical-analysis-breakout-in-jeopardy","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/gbpusd-technical-analysis-breakout-in-jeopardy\/","title":{"rendered":"GBPUSD Technical Analysis &#8211; Breakout in jeopardy"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2252\" class=\"elementor elementor-2252\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7af212b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7af212b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a04107e\" data-id=\"a04107e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6e99276 elementor-widget elementor-widget-text-editor\" data-id=\"6e99276\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The British pound has recovered back towards the 1.3600 area against the US dollar after the pair found strong dip-buying interest from the 1.3535 support area on Wednesday. A knee-jerk reaction to the weak US ADP private sector jobs report caused the brief sell-off in sterling, however, traders still bought the dip as the US dollar remained in a protracted downtrend.<\/p><p>From a technical perspective, the <a href=\"http:\/\/bit.ly\/2Zn4HaM\" target=\"_blank\" rel=\"noopener\">GBPUSD<\/a> pair is fascinating on many levels at the moment. Bulls are scooping up every major dip and price has been setting fresh multi-year trading highs, with the pair recently testing slightly above the 1.3700 handle.<\/p><p>The fundamentals for the UK economy are horrible now, due the sluggish economic activity, largely prompted by growing COVID-19 infections, and ongoing uncertainty towards the United Kingdom post the nations departure from the EU.<\/p><p>However, sterling does have political stability on its side at the moment, despite the negativity surrounding the UK economy. The ongoing troubles in Washington DC, and concerns about the blue wave in US congress clearly bode well for sterling at the moment.<\/p><p>If UK political stability can continue in 2021, and the UK makes significant progress with overseas trade deals, and if the UK financial sector actually benefits from the recent departure from the EU, then the British pound can certainly continue to trade higher.<\/p><p>Playing devil\u2019s advocate, there are some caveats that sterling traders need to consider when trading the pound in 2021. Firstly, the <a href=\"https:\/\/bit.ly\/3ra7ySw\" target=\"_blank\" rel=\"noopener\">FTSE100<\/a> looks to be on a major breakout, which could hamper sterling\u2019s gains due to the strong inverse correlation between the index and the British pound currency.<\/p><p>Additionally, a number of technical indicators are flagging significant amount of negative price divergence at the moment, which could prompt a steep technical correction towards the 1.3000 region before a major rally truly takes hold.<\/p><p><strong>GBPUSD Short-Term Technical Analysis<\/strong><\/p><p>The four-hour time frame continues to highlight the overall importance of the 1.3670 level. This is the key level that GBPUSD bulls need to overcome in the short-term to encourage a major push towards the 1.3800 and 1.4000 areas.<\/p><p>If bulls fail to secure the GBPUSD pair above the 1.3670 level, then bears may start to consider the prospect of trying to sink sterling sub 1.3400 and moving the pair into a much lower price range.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8341479 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8341479\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-041be32\" data-id=\"041be32\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-15c13b2 elementor-widget elementor-widget-image\" data-id=\"15c13b2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1004\" height=\"490\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/GBPUSD-1D.png\" class=\"attachment-large size-large wp-image-2255\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-90e2520 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"90e2520\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b18d64c\" data-id=\"b18d64c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aae4371 elementor-widget elementor-widget-text-editor\" data-id=\"aae4371\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-30c17e6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"30c17e6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-889e353\" data-id=\"889e353\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-45aacff elementor-widget elementor-widget-text-editor\" data-id=\"45aacff\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Warning signs are scattered on the lower time frames at the moment what could ensue if bears breach the 1.3400 level. Firstly, a large bearish reversal pattern will form if the drop reaches 1.3400.<\/p><p>Secondly bearish MACD and RSI price divergences are warning that the recent run higher to the 1.3700 level could quickly unravel. The negative price divergence extends down towards the 1.3000 level.<\/p><p><strong>GBPUSD Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time chart, the bull trend in the GBPUSD pair remains in play while price trades above the 1.2860 level. Trades should also note that the short-term trend remains bullish while price trades above the 1.3400 level, hence dips are still for buying.<\/p><p>A large inverted head and shoulders pattern has formed on the daily and weekly time frames, which points to medium to long-term gains towards the 1.4500 and 1.5000 levels.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0154c31 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0154c31\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-94d44f0\" data-id=\"94d44f0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-02f7eb2 elementor-widget elementor-widget-image\" data-id=\"02f7eb2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1004\" height=\"490\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/gbpusd-11.png\" class=\"attachment-large size-large wp-image-2257\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-766273a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"766273a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-69e4128\" data-id=\"69e4128\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-29f0ac6 elementor-widget elementor-widget-text-editor\" data-id=\"29f0ac6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c40b92b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c40b92b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-98e1fb2\" data-id=\"98e1fb2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-81166d7 elementor-widget elementor-widget-text-editor\" data-id=\"81166d7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The daily time frame also shows that the pattern may not be complete yet, and a final dip towards the 1.3000 area may still take place in order to complete the overall structure of the inverted head and shoulders pattern.<\/p><p>Traders should note that the RSI indicator on the daily time frame is showing that the GBPUSD pair has significant bearish price divergence extending down towards the 1.3100 area.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The British pound has recovered back towards the 1.3600 area against the US dollar after the pair found strong dip-buying interest from the 1.3535 support area on Wednesday. A knee-jerk reaction to the weak US ADP private sector jobs report caused the brief sell-off in sterling, however, traders still bought the dip as the US [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9,2],"tags":[45,57,20],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GBPUSD Technical Analysis - Breakout in jeopardy - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/gbpusd-technical-analysis-breakout-in-jeopardy\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GBPUSD Technical Analysis - Breakout in jeopardy\" \/>\n<meta property=\"og:description\" content=\"The British pound has recovered back towards the 1.3600 area against the US dollar after the pair found strong dip-buying interest from the 1.3535 support area on Wednesday. A knee-jerk reaction to the weak US ADP private sector jobs report caused the brief sell-off in sterling, however, traders still bought the dip as the US [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/gbpusd-technical-analysis-breakout-in-jeopardy\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-07T10:49:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-07T12:01:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/joshua-hoehne-DD9b6yugFxc-unsplash-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"586\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/gbpusd-technical-analysis-breakout-in-jeopardy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/gbpusd-technical-analysis-breakout-in-jeopardy\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"GBPUSD Technical Analysis &#8211; 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He holds a degree in Business and Finance and has an extensive background providing research for prop houses, and fund managers. 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