The GBP / USD pair, on 4-hour charts, is trading within the uptrend channel, after having consolidated above the 200 EMA. It now has the potential to rise to the 6/8 murray zone around 1.4038.
The Fed reaffirmed market expectations to maintain its ultra-flexible monetary policy stance for a longer period, also saying it is waiting for more data before it could start tapering its bond buying. This is undoubtedly bearish for the US dollar and could give the British pound a bullish momentum in the short term.
The US dollar index has reversed its trend. Now it us trading under downward pressure. This will give us the opportunity to buy the GBP / USD pair. Every time the British pound makes a technical correction or a rebound in support areas, it will be a good opportunity to continue with short positions.
According to the 4-hour chart, the British pound has immediate resistance at 1.3977 and the top of the bullish channel. It is also zone of the 5/8 murray. A pullback towards this level will be a good selling opportunity.
We expect a correction and a technical rebound in the 4/8 murray support zone around 1.3916. This is a key level as it has acted as strong resistance on previous occasions. Now we can take advantage of this level to buy with targets at 1.4038.
The technical reading of the eagle indicator is showing an overbought signal. The moving average is at the 95 level which represents an imminent correction in the short term.
Support and Resistance Levels for July 29 - 30, 2021
Resistance (3) 1.4118
Resistance (2) 1.4037
Resistance (1) 1.3990
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Support (1) 1.3950
Support (2) 1.3922
Support (3) 1.3881
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Trading tip for GBP/USD for July 29 - 30, 2021
Sell below 1.3977 (5/8), with take profit at 1.3916 (4/8), stop loss above 1.4010.
Buy if rebound at 1.3916 (4/8), with take profit at 1.3970 and 1.4038 (6/8), stop loss below 1.3875.
The material has been provided by InstaForex Company - www.instaforex.com