GBP/USD: Technical Analysis and Trading Recommendations_04/12/2021
After the GBP / USD had been declining for the previous 4 trading days, today it again tested the local support level 1.3680, attempting to break this level.
However, at the start of today's European session, GBP / USD is rallying, traded near 1.3745 mark at the time of this article's publication.
It is also worth noting that the technical indicators OsMA and Stochastic on the 1-hour and 4-hour charts turned to the long positions.
Sequential breakdown of strong short-term resistance levels of 1.3774 (ЕМА200 on the 1-hour chart), 1.3790 (ЕМА50 on the daily chart), 1.3813 (ЕМА200 on the 4-hour chart) may signal the resumption of long positions in GBP / USD.
GBP / USD continues to trade within the upward channel on the weekly chart, generally maintaining long-term positive dynamics.
After the breakdown of resistance levels 1.3915 (local highs), 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 level of 1.7200), 1.4006 (local resistance level) GBP / USD will head towards resistance levels 1.4240, 1.4350, 1.4440, 1.4580 (50% Fibonacci level), 1.4830 (ЕМА200 on the monthly chart).
In an alternative scenario and after the breakdown of the support level 1.3680, GBP / USD may decline to support levels 1.3540 (ЕМА144 on the daily chart), 1.3410 (ЕМА200 on the daily chart), 1.3210 (ЕМА200 on the weekly chart and 23.6% Fibonacci level).
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: 1.3680, 1.3540, 1.3410, 1.3300, 1.3210
Resistance levels: 1.3774, 1.3790, 1.3813, 1.3915, 1.3970, 1.4006, 1.4100, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830
Sell Stop 1.3670. Stop-Loss 1.3820. Take-Profit 1.3600, 1.3540, 1.3410, 1.3300, 1.3210
Buy Stop 1.3785, 1.3820. Stop-Loss 1.3670. Take-Profit 1.3915, 1.3970, 1.4006, 1.4100, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830