GBP/USD: Technical Analysis and Trading Recommendations_03/16/2021
At the time of publication of this article, the GBP / USD pair is traded near the 1.3817 mark, in the zone of strong short-term resistance levels 1.3911 (ЕМА200 on the 1-hour chart), 1.3859 (ЕМА200 on the 4-hour chart) and support level 1.3790 (ЕМА50 on the daily chart). Taking into account the long-term upward dynamics of the pair, it is logical to place buy orders in this zone with stops below the support level 1.3790.
GBP / USD continues to trade within the upward channels on the daily and weekly charts, generally maintaining long-term positive dynamics.
The breakdown of the resistance level 1.3859 will be the first signal for the resumption of long positions in GBP / USD.
After the breakdown of resistance levels 1.3970 (Fibonacci level 38.2% of the correction to the decline of the GBP / USD pair in the wave that began in July 2014 near the mark of 1.7200), 1.4006 (local resistance level), GBP / USD growth will continue towards resistance levels 1.4240, 1.4350, 1.4440, 1.4830 (50% Fibonacci level), 1.4830 (ЕМА200 on the monthly chart).
In an alternative scenario and after the breakdown of the support level 1.3790 (ЕМА50 on the daily chart), GBP / USD may decline to support levels 1.3460 (ЕМА144 on the daily chart), 1.3330 (ЕМА200 on the daily chart), 1.3210 (ЕМА200 on the weekly chart and Fibonacci level 23.6%).
A breakdown of the local support level 1.2685 (September 2020 lows) will increase the risks of a resumption of the global bearish trend in GBP / USD and may provoke a deeper decline towards the support levels 1.2250, 1.2085, 1.2000 (Fibonacci level 0%).
Support levels: 1.3790, 1.3565, 1.3460, 1.3330, 1.3210
Resistance levels: 1.3859, 1.3911, 1.3970, 1.4006, 1.4100, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830
Sell Stop 1.3780. Stop-Loss 1.3920. Take-Profit 1.3790, 1.3600, 1.3565, 1.3460, 1.3330, 1.3210
Buy by-market, Buy Stop 1.3865. Stop-Loss 1.3780. Take-Profit 1.3911, 1.3970, 1.4006, 1.4100, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830