At the opening of trading this week, the GBP / USD pair opened with a bearish GAP, after a few hours we saw that the pair covered this Gap, for now it is trading below the +1/8 of Murray and above the SMA of 21, maintaining the uptrend.
Fundamentally, Britain's vaccination campaign is making significant progress, after exceeding 500,000 injections per day and reaching more than ten million people, the UK is on the way to an early reduction in restrictions. Any of these announcements by the government can boost the British pound.
On the technical level, we note that the GBP / USD pair is showing signs of overbought, as the eagle indicator is in the 95 area, which implies an imminent correction in the coming days.
Therefore, if the GBP / USD pair trades below 1.3712, there is a probability of a downward movement to the 200 EMA zone, this level will give a further upward momentum to the British pound, up to the resistance zone of 1.3793 .
Conversely, a break below the 200 EMA, (1.3671) will be a good selling opportunity with Murray's 7/8 targets around 1.3610.
Our recommendation is to sell below 1.3712, only below this level the GBP / USD pair is expected to weaken until it reaches the support of 1.3610.
Support And Resistance Levels For February 08 - 09, 2021
Resistance (1) 1.3760
Resistance (2) 1.3790
Resistance (3) 1.3817
Support (1) 1.3679
Support (2) 1.3633
Support (3) 1.3597
Trading tip for GBP/USD for February 08 - 09, 2021
Buy if rebound around 1.3680 (EMA 200) with take profit at 1.3730 and 1.3793 (+2/8 of murray), stop loss below 1.3645.
Sell if breaks at 1.3671 (EMA 200) with take profit at 1.3610 (7/8), stop loss above 1.3705.
The material has been provided by InstaForex Company - www.instaforex.com