The GBP / USD pair, in the morning of the American session, is trading under downward pressure, and has fallen to six-week lows, around the zone of 1.3771.
The pair came under strong selling pressure on Tuesday and finally broke the uptrend channel in 4-hour charts, which for days has been containing the declines. Now the pair is trading below this level.
A sharp drop in equity markets has provided a strong boost to the safe-haven US dollar and has put pressure on the currency market.
On the other hand, the British pound has been weighed down by concerns that a significant shortage in vaccine supplies could derail the UK government's plan to break out of the current lockdown.
Also the UK employment results on Tuesday have done nothing significant to support and strengthen the British pound.
Technically, we notice a break in the trend channel on 4-hour charts, in the next few hours there may be a technical rebound, if the pullback occurs towards the 1.3835 area, it will be a good selling opportunity.
A consolidation and negotiation above 1.3845, there could be a change of scenery, with targets in the 1.3916 zone, where Murray's 6/8 is located. Strong resistance level. Once this level is exceeded, we expect the 1.40 area.
Support And Resistance Levels For March 23 - 24, 2021
Resistance (1) 1.3824
Resistance (2) 1.3855
Resistance (3) 1.3906
Support (1) 1.3762
Support (2) 1.3689
Support (3) 1.3579
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Trading tip for GBP/USD for March 23 - 24, 2021
Buy above 1.3770 (Strong Support), with take profit at 1.3835 and 1.3916, stop loss below 1.3745.
Sell if pullback at 1.3835 (Top trend channel), with take profit at 1.3800, and 1.3672 (4/8) stop loss above 1.3870.
