The US dollar (USDX) is strengthening, due to ten-year Treasury yields that have exceeded 1.75% and, five-year yields are also moving higher.
Also, the USDX is strengthening due to the optimism in vaccines that resides in the United States, as it advances at extremely rapid steps. By April 19, approximately 90% of Americans will be able to receive a vaccine for COVID-19.
The medium-term and long-term outlook for the US Dollar remains bullish, however, we expect a recovery in the GBP / USD pair for the next few days.
On the technical level, the GBP / USD pair, in the morning of the American session in 1 hour charts, is trading below the SMA of 21 and within the downtrend channel, and above the 61.8% Fibonacci, this zone is expected to offer a technical rebound to the pair.
Conversely, a break below the 61.8% Fibonacci, located at 1.3740, may drive the pair lower, to Murray's 0/8 support, located at 1.3671.
Since the 1.3740 level is key, if the pair trades below this level, we recommend selling the pair, as it could trigger a downward acceleration to the support of 1.3671.
Above the 21 SMA located at 1.3770, the pair is expected to maintain bullish momentum, if it consolidates above this zone we recommend buying with targets at the 200 EMA around 1.3795 and 1.3840.
Support And Resistance Levels For March 30 - 31, 2021
Resistance (1) 1.3778
Resistance (2) 1.3816
Resistance (3) 1.3876
Support (1) 1.3694
Support (2) 1.3680
Support (3) 1.3634
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Trading tip for GBP/USD for March 30 - 31, 2021
Sell below 1.3740 (61.8% Fibonacci), with take profit at 1.3700 and 1.3671(0/8), stop loss above 1.3775.
Sell if pullback at 1.3765 (SMA 21), with take profit at 1.3700, and 1.3671 (0/8) stop loss above 1.3800.
