At the beginning of trading this week, the British currency is trading below 0/8 of Murray and below the SMA of 21 with a bearish bias. At this time of writing, it is trading at 1.3666, the latest 4H candlestick shows that the bearish pressure has reached support. If it consolidates above 1.3671, it will be a good bullish opportunity.
From the current levels, some selling below the 1.3660 area will reaffirm the negative bias. It is likely to allow bears to challenge the 1.3610 level where 1/8 of a Murray and represents a zone of imminent technical rebound are located.
If the downward pressure prevails, it could reach at the minimum of September 23 around the zone of 1.3570. If it breaks below this level, it will make the GBP/USD pair vulnerable and could fall to the -2/8 of Murray that represents an imminent rebound and correction around 1.3549.
On the other hand, the level of 1.3765, is a strong resistance because the EMA of 200 is located there. 1/8 of a Murray is located slightly lower. It now seems to act as immediate resistance. If in the next few hours the pound sterling s consolidating above 0/8 of Murray located at 1.3671, it will be a good opportunity to buy with targets at the 200 EMA.
A sharp break and a consolidation above 1.3765 will be a good opportunity to buy with targets at 1.3855 and could reach the level of September 14 at 1.3901. There is the key level of 4/8 of Murray, which will be a very strong barrier for the British currency.
The technical reading of the eagle indicator that measures the strength and volume of the market is trading above the bearish channel showing a bullish signal in the short term. This means that a technical bounce in the next few days may occur.
The market sentiment report shows 68.34% of traders are buying the GBP/USD pair. This is a negative sign as the pound sterling could fall to the psychological level of 1.3500. As long as it remains below the 200 EMA (1.3765), the outlook will remain bearish.
Support and Resistance Levels for September 27 - 28, 2021
Resistance (3) 1.3742
Resistance (2) 1.3716
Resistance (1) 1.3686
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Support (1) 1.3638
Support (2) 1.3610
Support (3) 1.3601
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Trading tip for GBP/USD for September 27 - 28, 2021
Buy above 1.3671 (SMA 21) with take profit at 1.3732 (1/8) and 1.3765 (EMA 200), stop loss below 1.3630.
Buy if rebound 1.3630 with take profit at 1.3732 (1/8) and 1.3765 (EMA 200), stop loss below 1.3595.
The material has been provided by InstaForex Company - www.instaforex.com