The GBP / USD pair on 4-hour charts is trading within a downtrend channel, and above the 200 EMA and 21 SMA, with a probability of bullish momentum to the zone of 1.40.
The GBP / USD pair, has been struggling above 1.38, and found resistance at 1/8 of Murray, around 1.3916, if the pair breaks and consolidates above this level its next target will be the psychological level of 1.40, there in the graph we can see that it has left a series of attempts where on previous occasions the pair has touched.
Meanwhile, the eagle indicator is showing a bullish signal, although some caution is seen for bullish momentum, ahead of the FOMC's monetary policy decision. Because the last candles have left several wicks of indecision.
This, in turn, makes it prudent to wait for a sustained move beyond the 4-hour downtrend line, before confirming that the recent corrective decline is over and the pair has positioned for future gains. The GBP / USD could then make another attempt to conquer the psychological level of 1.4000.
On the other hand, any significant drop below the 1.3870 level, below the 200 EMA and the 21 SMA, is likely to find some support near 1.3810. If the downward pressure continues, the next support is at 1.3671, Murray's 0/8 level.
Support And Resistance Levels For March 17 - 18, 2021
Resistance (1) 1.3928
Resistance (2) 1.3964
Resistance (3) 1.4015
Support (1) 1.3868
Support (2) 1.3830
Support (3) 1.3810
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Trading tip for GBP/USD for March 17 - 18, 2021
Buy above 1.3930 (Bearish channel) with take profit at 1.3964 and 1.4015, stop loss below 1.3895.
Sell below 1.3870 (SMA 21 and EMA 200) with take profit at 1.3810, stop loss above 1.3910.
