The GBP / USD pair fell sharply in the last hours of the American session, from the highs of the European session yesterday at 1.4185 to reach the lows of 1.3949.
The British pound is consolidating above the support of 1.3950, due in this area there is a strong weekly support, there it could stop the fall of the pair.
The decline in GBP / USD is due to the good encouraging data for US bond yields, which have seen a spectacular rise to new highs in one year, this helped to strengthen the US Dollar on all fronts.
The GBP / USD pair several days ago was very overbought and a fall was imminent as we mentioned in our articles, now we could expect a technical rebound in the next few hours.
The 200 EMA in 1-hour charts has been broken, therefore a rebound towards the moving average zone could be a good selling opportunity, as the downward pressure could prevail during the weekend.
Our recommendation is to buy above 1.3950 at current price levels, targeting 1.4030, and this level could be a good selling point, targeting 1.3940 and 1.3916.
Support And Resistance Levels For February 26 - 28, 2021
Resistance (1) 1.4062
Resistance (2) 1.4126
Resistance (3) 1.4162
Support (1) 1.3941
Support (2) 1.3875
Support (3) 1.3817
Trading tip for GBP/USD for February 25 - 28, 2021
Buy if rebound around 1.3949 (strong support) with take profit at 1.4030, stop loss below 1.3915.
Sell if pullback at 1.4030 (EMA 200) with take profit at 1.3990 and 1.3919 (5/8), stop loss above 1.4065.
