The GBP / USD pair, on a 1-hour chart, is trading within an uptrend channel above the support of 2/8 Murray and above the 200 EMA, showing a bullish signal in the short term. The eagle indicator is supporting this bullish movement of the pound.
The US CPI pushed GBP/USD down to test the support area 2/8 murray, bouncing above the level of 1.3800. At this time of writing, the pair is trading above 3/8 of murray (1.3855) with a bullish bias.
The British pound in 1-hour charts has consolidated above the 200 EMA and the 21 SMA. Both lines are at 1.3825. If there is a correction to this area, it will be a good point to buy.
UK data could favor GBP / USD in the short term and give it a boost to the 1.3977 resistance zone. The UK CPI rose 2.5% year-on-year in June compared to consensus estimates that point to a rebound of 2.2% and 2.1% of the previous month.
This data has marked the highest level in almost three years. In the context of the health situation, it would put the strength of the British pound at risk due to the increase in cases of COVID-19 amid the Delta Variant. The market is anticipating lifting of restrictions announced for July 19.
Our recommendation is to buy the GBP / USD pair above 1.3855. If a technical bounce occurs due to a correction, buy at the 200 EMA support zone around 1.3825 with targets at 1.3916 (4/8) and 1.3977 (5/8).
Support and Resistance Levels for July 14 - 15, 2021
Resistance (3) 1.3980
Resistance (2) 1.3942
Resistance (1) 1.3874
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Support (1) 1.3832
Support (2) 1.3791
Support (3) 1.3769
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Trading tip for GBP/USD for July 12 - 13, 2021
Buy if rebound EMA 200 at 1.3825, with take profit at 1.3916 (4/8) and 1.3977, stop loss below 1.3790.
Buy above 3/8 of murray at 1.3855, with take profit at 1.3916 (4/8), stop loss below 1.3817.
The material has been provided by InstaForex Company - www.instaforex.com