The momentum on the 4-hour chart for GBP / USD shows that the pair has failed to break the 8/8 Murray resistance at 1.3671 and is turning lower.
We can also point out the area of the 21 SMA, which is located at 1.3627, this moving average continues to support and give the British pound an upward momentum, but a break or negotiation below this level, we could expect a fall of the pair to the Murray's 7/8 zone at 1.3549.
Our recommendation is to sell below 1.3671, a zone of strong resistance, with targets up to the support of the SMA of 21, this level may give a technical upward rebound, if the pair breaks this zone, we will continue to sell until the EMA of 200 at 1.3427 .
The eagle indicator gave a bearish signal 3 days ago, at this time it faces an overbought zone, which could support a correction of GBP / USD in the short term.
The market sentiment for today January 6 shows a figure of 51% of operators who are selling the GBP / USD, this could be generating a probable correction or change in trend in the short term.
Support And Resistance Levels For January 06-07, 2021
Resistance (1) 1.3692
Resistance (2) 1.3745
Resistance (3) 1.3844
Support (1) 1.3587
Support (2) 1.3517
Support (3) 1.3481
Trading tip for GBP/USD for January 06-07, 2021
Sell Now 1.3670/0 (8/8 of murray) with take profit at 1.3620 and 1.3549, stop loss above 1.3705
Sell if breaks 1.3625, (trend line) with take profit at 1.3549, stop above 1.3670.
Sell if breaks 1.3549, (7/8) with take profit at 1.3427 (EMA 200), stop above 1.3595.
