The GBP / USD pair is trading below the SMA of 21 and above 3/8 of Murray, showing a bearish signal. From its low at 1.3788 to the high of 1.40, it has made the respective Fibonacci retracement to the zone of the 61.8% (1.3875).
On Friday, the British pound tried to break above the 21 SMA zone located at 1.3932, but could not consolidate above it and we saw a retracement below the moving average to the 61.8% Fibonacci level around 1.3875.
The BOE, as expected, did not introduce any policy changes. Its rhetoric was on the moderate side and weakened the pound. However, GBP fall was not as critical as expected, as the pound managed to stabilize above 1.3890.
The downward pressure could continue only if GBP / USD remains below 1.3930. There is likely to be a technical bounce at the 3/8 murray support around 1.3855. There will be a good point to buy at this level with targets at 1.3930 and 1.4038, 6/8 murray zone.
The Dollar index, USDX, is trading with a slight bullish bias, consolidating above the SMA of 21. So, it could add downward pressure to the GBP / USD pair, thus causing a break below 1.3850. We should avoid buying because the bearish pressure could take it to support at 1.3793.
Market sentiment for Monday June 28 shows that there are 55.51% of traders who are buying the GBP / USD pair. The pair is trading with a mixed bias, so the market has not yet defined the trend and this could be a sign of range for a short time.
Our recommendation is to wait for a technical rebound in the 3/8 murray zone (1.3855) to buy with targets at the SMA of 21 (1.3930). Besides, if it breaks this level to the psychological level of 1.40, closing below 1.3850 in a 4-hour chart, we should avoid buying.
Support and Resistance Levels for June 28 – 29, 2021
Resistance (3) 1.3981
Resistance (2) 1.3958
Resistance (1) 1.3917
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Support (1) 1.3852
Support (2) 1.3829
Support (3) 1.3788
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Trading tip for GBP/USD for June 28 - 29, 2021
Buy above 1.3930, (SMA 21), with take profit at 1.4000 and 1.4038 (6/8), stop loss below 1.3895.
Buy if rebound 1.3855, (3/8), with take profit at 1.3930 (SMA 21), and 1.4, stop loss below 1.3820.
The material has been provided by InstaForex Company - www.instaforex.com