Technical analysis of GBP/USD for 17/01/2019:
The bulls have broken above the last swing high, more upside to follow soon, target 1.3000.
Since the very big Pin Bar candle at the level of 1.2432, the bulls are relentless in their move north. Recently, the price has bounced from the technical support at the level of 1.2832 after a few hours of consolidation and broke above the last swing high (and technical resistance) at the level of 1.2928 with ease.
According to the Fibonacci projections, the next target for bulls is seen at 61.8% Fibonacci Extension of the last corrective swing down, which is at the level of 1.2976. Nevertheless, the target might be even a little bit higher at the level of 1.3000, because it is a round number that will often attract the price. Moreover, there is a long-term trend line resistance around the level of 1.2990, so the breakout higher towards the next technical resistance seen at the level of 1.3047 might be a hard thing to do.
The market conditions remain oversold and despite the fact, that the momentum is still strong and positive, there is a clear bearish divergence forming between the price and the momentum oscillator. This is why the move up might not be that strong as it seems and the corrective pull-back might occur any-time soon.
Trading recommendations:
The short-term uptrend should be continued to the level of 1.2976, 1.3000 and after this levels are hit, then the corrective pull-back towards the level of 1.2928 should occur.
