Technical Analysis of GBP/USD for April 20, 2021

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Overview :
  • As expected, the GBP/USD pair continues to move upwards from the level of 1.3933.
  • Yesterday, the pair rose from the level of 1.3879 (this level of 1.3879 is coincided with the golden ratio) to the top around 1.4008.
  • As the price is still above the moving average (100), immediate support is seen at 1.3879, which respersents with 61.8% of Fibonacci.
  • Today, the first support level is seen at 1.3933 followed by 1.3879, while daily resistance 1 is seen at 1.4047.
  • According to the previous events, the GBP/USD pair is still moving between the levels of 1.3933 and 1.4047; for that we expect a range of 114 pips (1.4047 - 1.3933).
  • Furthermore, if the trend is able to breakout through the first resistance level of 1.4047. We should see the pair climbing towards the next resistance (1.4083) to test it.
  • If the GBP/USD pair fails to break through the resistance level of 1.4047, the market will decline further to 1.3933.
  • This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3879 with a view to test the daily pivot point.
  • On the contrary, if a breakout takes place at the support level of 1.3850, then this scenario may become invalidated. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.3800.
The material has been provided by InstaForex Company - www.instaforex.com

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