GBP/USD: Technical Analysis and Trading Recommendations_05/17/2021

 
 
 
 
 
 
 

GBP / USD maintains positive long-term dynamics, moving within the upward channels on the daily and weekly charts.

At the time of this posting, GBP / USD is traded above 1.4100 mark, maintaining upward dynamics on the back of fundamentals.

The growth targets for the pair are resistance levels 1.4165 (local resistance level), 1.4240 (the upper border of the ascending channel on the daily chart), 1.4580 (the upper border of the ascending channel on the weekly chart and 50% Fibonacci level 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), 1.4800, 1.4830 (ЕМА200 on the monthly chart).

In an alternative scenario and after the breakdown of the support level 1.4038 (ЕМА200 on the 1-hour chart), GBP / USD may decline to the support levels 1.3970, 1.3931, 1.3800, and after their breakdown - to the levels 1.3665 (ЕМА144 on the daily chart), 1.3540 (ЕМА200 on the daily chart).

A breakdown of support levels 1.3280 (ЕМА200 on the weekly chart), 1.3210 (Fibonacci level 23.6%) will increase the risks of a resumption of the global bearish trend in GBP / USD and may provoke a deeper decline towards support levels 1.2250, 1.2085, 1.2000 (Fibonacci level 0%).

A breakdown of the short-term support level 1.4081 (ЕМА200 on the 15-minute chart) may become the first signal for the implementation of the alternative scenario.

Support levels: 1.4081, 1.4038, 1.4006, 1.3970, 1.3931, 1.3900, 1.3840, 1.3665, 1.3600, 1.3540, 1.3280, 1.3210

Resistance levels: 1.4165, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830

Trading recommendations

Sell Stop 1.4070. Stop-Loss 1.4130. Take-Profit 1.4038, 1.4006, 1.3970, 1.3931, 1.3900, 1.3840, 1.3665, 1.3600, 1.3540, 1.3280, 1.3210

Buy Stop 1.4130. Stop-Loss 1.4070. Take-Profit 1.4165, 1.4240, 1.4350, 1.4440, 1.4580, 1.4830