The GBP/USD pair is trading within a downtrend channel on the 1H chart, below the SMA of 21. It is likely to decline to the zone of the EMA of 200, located at 1.3810.
Taking into account that the pair is overbought, it is likely to decrease to the 1.38 and 1.3750 area as the sentiment for the US dollar is prevailing. The pair may fall n the short term.
Only if GBP/USD consolidates below 6/8 Murray around 1.3916, it could drop to 5/8 Murray located at 1.3793.
Our recommendation is to sell GBP/USD at current price levels with first target at the 200 EMA and 5/8 Murray.
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Support And Resistance Levels For February 17 - 18, 2021
Resistance (1) 1.3918
Resistance (2) 1.3941
Resistance (3) 1.3984
Support (1) 1.3817
Support (2) 1.3778
Support (3) 1.3732
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Trading tip for GBP/USD for February 17 - 18, 2021
Sell below around 1.3880 (SMA of 21) with take profit at 1.3855, and 1.3815 (EMA 200), stop loss above 1.3921.
