GBP/USD: Technical Analysis and Trading Recommendations_05/31/2021

 
 
 
 
 
 
 

GBP / USD maintains positive long-term dynamics, moving within the upward channel on the daily chart. Its upper border passes through the level 1.4300 and after the breakdown of the local resistance level 1.4240, this mark will become the closest target of the GBP / USD growth.

More distant growth targets for the pair are resistance levels 1.4580 (Fibonacci level 50% of the correction to the decline of the GBP / USD pair in the wave that began in July 2014 near the level 1.7200), 1.4800, 1.4830 (ЕМА200 on the monthly chart).

At the time of publication of this article, GBP / USD is traded in the zone above the support levels 1.4153 (ЕМА200 on the 1-hour chart), 1.4100, maintaining a tendency towards further growth amid fundamental factors.

In an alternative scenario, and after the breakdown of the support level 1.4100, GBP / USD may decline to the support levels 1.4034 (ЕМА200 on the 4-hour chart and the lower line of the ascending channel on the daily chart), 1.4006, 1.3970 (Fibonacci level 38.2%), and after them breakout - to the levels 1.3730 (ЕМА144 on the daily chart), 1.3600 (ЕМА200 on the daily chart).

The breakout of support levels 1.3300 (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 1.4153 (ЕМА200 on the 1-hour chart) may become the first signal for the implementation of the alternative scenario.

Support levels: 1.4153, 1.4100, 1.4034, 1.4006, 1.3970, 1.3900, 1.3840, 1.3730, 1.3665, 1.3600

Resistance levels: 1.4200, 1.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830

Trading recommendations

Sell Stop 1.4130. Stop-Loss 1.4210. Take-Profit 1.4100, 1.4034, 1.4006, 1.3970, 1.3900, 1.3840, 1.3730, 1.3665, 1.3600

Buy Stop 1.4210. Stop-Loss 1.4130. Take-Profit 1.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830