The GBP / USD pair is located in the zone of the SMA of 21, showing a bearish bias after having found resistance below 4/8 of murray around 1.39. At this time of writing it is bouncing above the 21 SMA. If the bearish pressure intensifies, it could drop to the 2/8 murray zone (1.3793).
The news in the UK may be encouraging for GBP / USD as UK Prime Minister Boris Johnson urged the public to remain vigilant when the economy reopens on July 19 but refrained from making changes in the politics despite the rise in COVID-19 cases.
According to the chart, we note that GBP / USD is forming an uptrend channel. We indicate the 1.3793 area as a good technical bounce point to watch in order to buy with targets at 1.3855 and 1.3916.
The 2/8 Murray level on previous occasions has been a strong bottom. The market has been bouncing above this level. Now we expect this to happen, therefore the 1.3793 area will be a key point. If the British pound consolidates above this level, there will be a good opportunity to buy.
On the contrary, if GBP / USD breaks the 2/8 of murray (1.3793) and consolidates below this level, we expect a downward movement to the low of 1.3730. With only a few days left for the UK restrictions to reopen, the pair could remain in a consolidation zone pending any announcement or change in the UK policy.
Our recommendation is to buy above the 2/8 of murray or if it consolidates above the 21 SMA to buy with targets at 1.3916. The eagle indicator is showing a bearish signal, therefore we can expect a correction towards the zone of support (1.3793) to be able to buy again.
Support and Resistance Levels for July 13 - 14, 2021
Resistance (3) 1.3954
Resistance (2) 1.3915
Resistance (1) 1.3876
----------------------------
Support (1) 1.3805
Support (2) 1.3773
Support (3) 1.3684
***********************************************************
Trading tip for GBP/USD for July 13 - 14, 2021
Buy if rebound around 1.3793 or above 2/8, with take profit at 1.3855 and 1.3916 (4/8), stop loss below 1.3760.
The material has been provided by InstaForex Company - www.instaforex.com