Trading Signal for GBP/USD for June 17 - 18, 2021: Buy above 1.3916

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In the early American session, the GBP / USD pair is trading below the 21 SMA and the 200 EMA, with obvious downward pressure and immediate support at the 4/8 murray zone around 1.3916.

The GBP / USD pair quickly broke below the psychological level of 1.40 due to the Fed's policy announcements. The regulator indicated that it would increase interest rates 2 times in 2023, instead of waiting with rate hikes until 2024.

This data gave a strong impulse to the USDX, which pushed down the GBP / USD pair, which is now at oversold levels in 4-hour charts. An imminent rebound is expected in the next few hours as the eagle indicator is showing an oversold signal.

On the other hand, in the United Kingdom the government has already extended the current restrictions until July 19, a delay of four weeks. This postponement caused some anger among the deputies of Prime Minister Boris Johnson, but was approved by parliament.

This data will also be a factor that could limit the rise of the pair. Technically, it is also likely since it is located below the EMA of 200 (1.4101). As long as it remains below this level, any attempt to approach this area will be a good selling opportunity.

Our recommendation is to wait for a consolidation at the 4/8 murray (1.3916) support level to buy, as this downward movement will be a good opportunity to buy. The eagle indicator supports the probability of an imminent technical bounce in the next few hours.

Support and Resistance Levels for June 17 – 18, 2021

Resistance (3) 1.4076

Resistance (2) 1.4031

Resistance (1) 1.4005

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Support (1) 1.3924

Support (2) 1.3880

Support (3) 1.3779

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Trading tip for GBP/USD for June 17 - 18, 2021

Buy if rebound or above 1.3916, (4/8 of murray), with take profit at 1.4005, and 1.4050, stop loss below 1.3880.

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

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