Trading Signal for GBP/USD for September 13 - 14, 2021: Buy above 1.3801 (EMA 200)

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The 4-hour chart of the British pound shows that the pair is trading above the 200 EMA and above the 21 SMA. GBP/USD is rebounding, having found support at the 2/8 murray line around 1.3795

Last week the GBP / USD pair touched the 1.3886 resistance level forming a double-top pattern. Then, it fell to the 200 EMA about 90 points below this level, now getting ready for a new bullish sequence. As long as it remains above 1.38, the pair is expected to continue rising to 4/8 murray at 1.3916.

Investors are alert to the US CPI figures to be released on Tuesday, September 14. If inflation remains high, the Federal Reserve would cut its bond purchase program this year. This, in turn, could erode the strength of the British pound so that GBP/USD fall to the 1.36 level in the short term.

On the other hand, in the United Kingdom, the government is discussing tax hikes to ensure the budget for a new social care program. If the plans are put into practice, it could weaken the British pound in addition to the pressure exerted on the economic recovery by COVID-19.

A bearish scenario could come into play if the GBP / USD pair trades below the 200 EMA and below 1.3795, with targets up to the support of 1.3755. This level will be a good point to buy because there is the uptrend channel line.

A sharp break below the 4-hour bullish channel will indicate the start of a trend reversal and the double-top pattern signal could be validated and could fall to the 1.36 level, the August 19's low.

On the contrary, we can continue buying the pair above 1.38, targeting resistance at 1.3885. If this level is broken, the next target for the pound will be 1.3916. A consolidation above 4/8 of murray could quickly push the price to the psychological level of 1.40.

Our outlook will remain bearish as long as the pair remains below 1.3916. There is a pivot point. Besides, the eagle indicator supports our bearish outlook as it is in the overbought zone and there could be a decline in the GBP in the coming days.

Support and Resistance Levels for September 13 - 14, 2021

Resistance (3) 1.3977

Resistance (2) 1.3916

Resistance (1) 1.3885

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Support (1) 1.3793

Support (2) 1,3732

Support (3) 1,3671

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Trading tip for GBP/USD for September 13 - 14, 2021

Buy above 1.3801 (EMA 200), with take profit at 1.3885 and 1.3916 (4/8), stop loss below 1.3765.

Sell below 1.3795 2/8 with take profit at 1.3755 and stop loss above 1.3835.

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

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