Trading Signal for GBP/USD for May 05 - 06, 2021: buy above 1.3905

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In the European pre-market, the GBP / USD pair is located above the SMA of 21 and the EMA of 200 that is seen in the 4-hour chart. The British pound is preparing for a new bullish momentum only if it breaks 4 / 8 for murray and if it consolidates above 1.3916.

The recovery in the United States economy, led by a rapid vaccination campaign and fiscal stimulus, is giving support to the US dollar. This has encouraged the markets to take refuge in the US dollar.

The British pound has not lost its bullish bias yet, as long as it remains above the 200 EMA, above 1.3825, there could be a further bullish momentum to 6/8 murray at the 1.4038 zone.

On the contrary, a break below the triangle and below the SMA of 21. There could be a downward movement to the support of 1.3611, in the medium term.

The strong support is located at 2/8 of a murray, a zone of a probable change in trend, since the uptrend channel converges there. Only the break below this level will be the start of a new bearish wave.

The technical reading of the eagle indicator shows that it is giving a bullish signal, that means in the coming days the GBP / USD could go to look for the zone of the psychological level of 1.40 and could reach 1.4038.

Support and Resistance Levels For May 05 - 06, 2021

Resistance (1) 1.3917

Resistance (2) 1.3949

Resistance (3) 1.3989

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Support (1) 1.3877

Support (2) 1.3845

Support (3) 1.3805

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Trading Tip for GBP/USD for May 05 - 06, 2021

Buy above 1.3905 ( 4/8 of murray), with take profit at 1.3949 and 1.3989., Stop loss below 1.3970.

Sell below 1.3825 (EMA 200 and breaks trend line) with take profit at 1.3800 and 1.3670 (strong support), stop loss above 1.3862.

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

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