The GBP / USD pair, on the 4-hour chart, is under downward pressure, below the 200 EMA, the 21 SMA and trading within a 4-hour bearish channel, although it has rebounded from the 1.3816 low, it is now facing the 200 EMA.
The pair has extended last week's rejection slide, from the key psychological level of 1.4000, and has continued under bearish pressure for the third day in a row on Tuesday.
After the suspension of the Oxford / AstraZeneca coronavirus vaccine in several European countries. Investors have become cautious and this in turn has benefited the safe haven US dollar and put some downward pressure on the GBP / USD pair.
The US dollar has strengthened due to the optimistic economic outlook for the United States, reinforced by the approval of a massive stimulus package of 1.9 trillion dollars.
On a technical level, we note that the GBP / USD, is trading at the moment of writing below the 200 EMA, if it fails to consolidate above this, it will be a clear sign of an opportunity to sell, with targets at the short term at 1.3672.
Conversely, if GBP / USD consolidates above the 200 EMA, we could expect a bullish move to the 1/8 Murray resistance around 1.3916. There, if you cannot break it, in this pullback you can sell since the top of the bearish channel is located there.
A definitive break above 1.3916 and above the 4-hour bearish channel, the demand for GBP / USD, may increase to 1.4160 levels.
Our recommendation is to sell below the 200 EMA, targeting Murray's 0/8 at 1.3671.
Support And Resistance Levels For March 16 - 17, 2021
Resistance (1) 1.3906
Resistance (2) 1.3948
Resistance (3) 1.3997
Support (1) 1.3851
Support (2) 1.3810
Support (3) 1.3754
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Trading tip for GBP/USD for March 16 - 17, 2021
Sell below 1.3862 (EMA 200) with take profit at 1.3810 and 1.3755, stop loss above 1.3897.
Buy above 1.3875 (EMA 200) with take profit at 1.3916, stop loss below 1.3841.
Sell if pullback 1.3916 (1/8 of murray) with take profit at 1.3860 and 1.3810, stop loss above 1.3955.
