Technical Analysis of GBP/USD for April 19, 2021

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Overview :

The GBP/USD pair advances toward 1.3890 as U.S Dollar yields decline. The GBP/USD pair is on the rise as falling US Dollar yields drag the Pound up. Britain's successful vaccination campaign and an optimistic market mood also support cable in coming days.

The GBP/USD pair has turned bullish in the near-term, with an immediate resistance at 1.3918 (the double top).

The GBP/USD pair has turned bullish according to the H1 chart, rising sharply after meeting buyers around a mildly bullish 100 EMA and settling well above the 50 EMA.

Further close above the high end may cause a rally towards 1.3918. Nonetheless, the weekly resistance level and zone should be considered.

Technical indicators have picked up after testing their midlines, maintaining their positive slopes although within familiar levels. In the one-hour chart, the bullish potential is stronger, as the Momentum indicator heads north almost vertical, while the RSI advances around 75 (Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market). Also, the pair closed above its 100 SMA, although it would need to extend its advance to confirm the bullish breakout.

The GBP/USD pair broke resistance which turned to strong support at the level of 1.3823.

The level of 1.3823 is expected to act as major support today. From this point, we expect the GBP/USD pair to continue moving in a bullish trend from the support levels of 1.3823 and 1.3863.

Consequently, the first support is set at the level of 1.3864 (horizontal red line). So, the market is likely to show signs of a bullish trend around the spot of 1.3864.

In other words, buy orders are recommended above the spot of 1.3864 with the first target at the level of 1.3918; and continue towards 1.3945 (the weekly resistance 2).

It is still in a positive area and does not show any trend-reversal signs at the moment. On the other hand, if the GBP/USD pair fails to break through the resistance level of 1.3945 this week, the market will decline further to 1.3823 (pivot). The pair is expected to drop lower towards at least 1.4473 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today.

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

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