Trading Signal for GBP/USD for February 15 - 16, 2021: Overbought

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The GBP/USD pair, on Friday of last week, managed to close above 1.3850, opening the doors for a bullish move to the +2 / 8 Murray level around 1.3916, this bullish momentum is due to growing optimism from the UK leadership, in terms of the coronavirus vaccination campaign and could ease lockdown restrictions.

At this moment before the opening of the European session, it is trading near the +2/8 Murray level, which represents an extreme overbought. A correction could occur in the next few hours as the eagle indicator is showing a signal of overbought.

The GBP/USD pair is trading above the SMA of 21 on 4-hour charts with the key level of 1.3855 because below this moving average, a correction could occur.

We can notice an uptrend channel on 4-hour charts, if it is broken it could add strength to the bearish movement.

The first support is found at 1.3793, this level if broken could continue the correction to the level of the 200 EMA around 1.3671.

Given the British pound is overbought, we recommend selling below the level of +2/8 murray with targets 1.3855 and 1.3796.

Support And Resistance Levels For February 15 - 16, 2021

Resistance (1) 1.3918

Resistance (2) 1.3941

Resistance (3) 1.3971

Support (1) 1.3829

Support (2) 1.3797

Support (3) 1.3742

Trading tip for GBP/USD for February 15 - 16, 2021

Sell below around 1.3916 (+2/8 of murray) with take profit at 1.3855, and 1.3793, stop loss above 1.3950.

Buy if rebound around 1.3855 (SMA 21) with take profit at 1.3916, stop loss below 1.3820.

Sell if breaks at 1.3845 (SMA 21) with take profit at 1.3796 and 1.3671 (EMA 200), stop loss above 1.3880.

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