Technical Analysis of GBP/USD for April 16, 2021

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Overview :
  • After breaking the support at 1.3794. The GBP/USD pair has set strong resistances at the levels of 1.3794 because the support has become a resistance on the 15th of April 2021.
  • So, the price has already formed the strong resistance at the level of 1.3794 and the pair probably will try to approach from it in order to test it again.
  • However, if the pair fails to pass through the level of 1.3794, the market will indicate a bearish opportunity below the new strong resistance level of 1.3794 (the level of 1.3794 coincides with the ratio of 50% Fibonacci).
  • Moreover, the RSI is becoming to signal a downward trend, as the trend is still showing strong above the moving average (100) and (50).
  • Thus, the maket is indicating a bearish opportunity below the 1.3794 level so it will be a good sign to sell at 1.3794 with the first target of 1.3729.
  • It will also call for a downtrend in order to continue towards 1.3670. The daily strong support is seen at 1.3670.
  • On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.3918.
The material has been provided by InstaForex Company - www.instaforex.com

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