The GBP / USD pair, in 4-hour charts, is trading with a bullish bias, supported by the strong support of 1.3549, and below a channel of bearish pressure, and below the 8/8 of murray that acts as a strong resistance.
This consolidation of the GBP / USD pair, could be a sign of a possible bullish movement, of course only if it breaks the 8/8 of murray around 1.3670.
We also notice in the 4 hour chart that it is trying to trade above the 21 day SMA, if the pair remains above this level, a bullish move could occur in the short term.
In contrast, a definitive break below the strong support at 1.3549, and below the 21-period SMA, could accelerate the decline to the 6/8 Murray level, which is also the 200 EMA, about 1.3427.
Our recommendation is to sell the GBP / USD pair, only if it trades below the bearish pressure line and below the 8/8 of murray, with targets at 6/8 of murray in 1.3427.
The market sentiment report for today January 8, shows the figure of 50% of operators who are selling the GBP / USD, which is likely to have a bearish movement in the short term to the 1.3427 area.
Support And Resistance Levels For January 08-11, 2021
Resistance (1) 1.3617
Resistance (2) 1.3675
Resistance (3) 1.3718
Support (1) 1.3517
Support (2) 1.3474
Support (3) 1.3416
Trading tip for GBP/USD for January 08-11, 2021
Sell if pullback to 1.3636 (pressure line) with take profit at 1.3549, stop loss above 1.3680.
Buy if rebound around 1.3549 (strong support), with take profit 1.3612 and 1.3670, stop loss below 1.3505.
Sell if breaks 1.3549 (Strong support) with take profit at 1.3427 ( EMA 200), stop loss above 1.3585.
