The British Prime Minister, Boris Johnson, announced yesterday that the country would leave the block on February 22.
He also said that speculation about moderating the lockdown was understandable, advising everyone to wait, adding that the removal of restrictions will be done in stages.
This report could be very good for the UK economy. The GBP/USD pair may also gain ground. However, now, it is overbought. There may be a correction to the 5/8 Murray zone around 1.3793.
Before the opening of the European session, it is trading below the 21 and below the downtrend channel on the 4H chart.
We can also suggest the break of the uptrend channel. This is a sign that the GBP/USD pair could fall to the level of 1.3790 in the short term.
Our recommendation is to sell below the SMA of 21 around 1.3985. This level is key because below this zone the pair is under downward pressure.
Support And Resistance Levels For February 18 - 19, 2021
Resistance (1) 1.3991
Resistance (2) 1.3918
Resistance (3) 1.3941
Support (1) 1.3817
Support (2) 1.3782
Support (3) 1.3732
Trading tip for GBP/USD for February 18 - 19, 2021
Sell below around 1.3888 (SMA 21) with take profit at 1.3835, and 1.3793 (5/8), stop loss above 1.3930.
Buy if rebound around 1.3793 (5/8 of murray) with take profit at 1.3845 and 1.3890, stop loss below 1.3760.
