Technical analysis of GBP/USD for February 19, 2021

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Overview :

As expected the GBP/USD pair continues moving in a bullish trend from the support levels of 1.3868 and 1.3918.

Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.3868, which coincides with a golden ratio (61.8% of Fibonacci).

Consequently, the first support is set at the level of 1.3868. So, the market is likely to show signs of a bullish trend around the spot of 1.3868/1.3918.

In other words, buy orders are recommended above the golden ratio (1.3868) with the first target at the level of 1.3985. Furthermore, if the trend is able to breakout through the first resistance level of 1.3985.

We should see the pair climbing towards the double top (1.3985) to test it. Also, it should be noticed that, the level of 1.3868 represents the daily pivot point.

We expect the GBP/USD pair to move between 1.3868 and 1.4080 in coming hours. On the H1 chart, resistance is seen at the levels of 1.4040 and 1.4080.

Therefore, strong support will be formed at the level of 1.3868 providing a clear signal to buy with the targets seen at 1.4040. If the trend breaks the support at 1.4040 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.4080 in order to test the daily resistance 2.

It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.3751.

The material has been provided by InstaForex Company - www.instaforex.com

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