At the opening of the American session, the GBP/USD pair is trading at the 8/8 level of Murray, a zone of strong resistance. It continues to trade within the uptrend channel. We can also observe the formation of a fractal above the latest highs, which means that a decline could occur for the next few days.
Whenever the GBP/USD pair trades below the 8/8 Murray level we could expect a downward movement to the 200 EMA zone, this will be the last opportunity for the GBP/USD pair for a new bullish attempt, a definitive break of the EMA 200, could accelerate the fall.
The eagle indicator is slightly showing a bearish signal, since the volume of trades for these weeks will be low, we could see unexpected movements at the close of each market session.
Our recommendation is to sell below 1.3670, only below that level can we sustain sales in the medium term, if it exceeds the 1.37 mark, we must avoid selling.
Market sentiment shows that there are 61% of traders that are selling the GBP/USD pair, this shows that the markets could prepare for a new bullish momentum in the short term, but first we should see a correction.
Support And Resistance Levels For January 04-05, 2021
Resistance (1) 1.3729
Resistance (2) 1.3773
Resistance (3) 1.3844
Support (1) 1.3603
Support (2) 1.3559
Support (3) 1.3518
Trading tip for GBP/USD for January 04-05, 2021
Sell below 1.3670 (8/8 of murray) with take profit at 1.3615, and 1.3427 stop loss above 1.3705.
Buy if rebound around SMA 21 at 1.3615, with take profit 1.3670 and 1.3744, stop loss below 1.3575.
