The GBP/USD pair, before the opening of the European session, is trading below the 21 SMA and below the 7/8 Murrey on the 1-hour chart, showing exhaustion of the bullish force.
The GBP/USD pair is retreating below the 1.41 level after Friday's rally, favored by the weakness of USDX, and also by the fall of the yields of the US Treasury bonds.
The 21 SMA on 1-hour chart could act as immediate support, so if GBP/USD trades below 1.4080, there could be a drop to the 6/8 Murrey, around 1.4038.
On the other hand, a pullback to the 7/8 resistance zone may be a good selling opportunity, targeting the 6/8 Murrey. The eagle indicator is giving a bearish signal.
Support and Resistance Levels for May 17 - 18, 2021
Resistance (3) 1.4168
Resistance (2) 1.4154
Resistance (1) 1.4124
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Support (1) 1.4049
Support (2) 1.4025
Support (3) 1.400
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Trading tip for GBP/USD for May 17 - 18, 2021
Sell if pullback 1.4099 (7/8), with a Take Profit at 1.4038, and a Stop Loss above 1.4135.
Sell below 1.4080 (SMA 21), with a Take Profit at 1.4038, and a Stop Loss above 1.4115.
The material has been provided by InstaForex Company - www.instaforex.com