GBP/USD: Technical Analysis and Trading Recommendations_02/10/2021

 
 
 
 
 
 
 

At the time of this article's publication, the GBP / USD pair was trading near 1.3846. At the start of today's European pair, the pair reached an intraday 34-month high of 1.3855.

GBP / USD continues to trade within the upward channels on the daily and weekly charts, generally maintaining long-term positive dynamics.

Remaining in the zone above the key support levels 1.3160 (ЕМА200 on the daily chart), 1.3185 (ЕМА200 on the weekly chart), the pair is in the bull market zone.

Moreover, in the area of the current levels and above the support levels 1.3626 (ЕМА200 on the 4-hour chart), 1.3721 (ЕМА200 on the 1-hour chart), nothing threatens long positions. A rise into the zone above the local resistance level 1.3855 will confirm the long-term bullish trend of the pair.

In an alternative scenario, a breakdown of the support level 1.3721 may provoke a decline in GBP / USD to support levels 1.3626, 1.3565 (ЕМА50 on the daily chart), and after their breakdown - to support levels 1.3270, 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in the wave that began in July 2014 near the level of 1.7200), 1.3185, 1.3160.

However, only a breakdown of the local support level 1.2685 (September lows) will increase the risks of a resumption of the global bearish trend of the GBP / USD and may provoke a deeper decline towards support levels 1.2250, 1.2085, 1.2000 (Fibonacci level 0%).

Support levels: 1.3758, 1.3721, 1.3626, 1.3565, 1.3270, 1.3210, 1.3185, 1.3160

Resistance levels: 1.3667, 1.3758, 1.3800, 1.3900, 1.3960

Trading recommendations

Sell Stop 1.3790. Stop-Loss 1.3865. Take-Profit 1.3758, 1.3721, 1.3626, 1.3565, 1.3270, 1.3210, 1.3185, 1.3160

Buy Stop 1.3865. Stop-Loss 1.3790. Take-Profit 1.3900, 1.3960, 1.4000, 1.4100