The GBP / USD pair is showing some strength against the US Dollar, it has recovered around 70 pips from yesterday's low, in reaction to an optimistic report of the UK GDP, consolidating above 1.3740, zone of 61.8% of Fibonacci.
After the technical bounce in the key zone of 1.3700, the previous day, the GBP / USD pair in this morning of the American session is trading above the 50% Fibonacci and just above the SMA of 21 in 4-hour charts.
The British pound reacted higher after the UK Office for National Statistics reported that the economy expanded 1.3% during the fourth quarter of 2020. The reading was above the 1.0% growth previously estimated and was accompanied by a current account deficit better than expected.
On the technical level, we can notice the formation of a shoulder, head, shoulder pattern, if the pair consolidates above 1.3770, the outlook is bullish up to the 1.3895 resistance zone, at this level the 200 EMA is located, and higher at 1.3916, Murray 2/8.
As the Eagle indicator is showing a bullish signal, this momentum in the GBP / USD pair is expected to take it to the 1.3916 area in the short term.
In addition, it is expected to consolidate above 61.8% Fibonacci, for this perspective to prevail, on the contrary a negotiation below 1.3730, there could be a strong bearish movement.
We recommend buying above 1.3740 and above 1.3770, with targets at 1.3895, at this point there may be a selling opportunity, due to the dynamic resistance of the 200 EMA located there.
Support And Resistance Levels For March 31 - April 01, 2021
Resistance (1) 1.3818
Resistance (2) 1.3854
Resistance (3) 1.3887
Support (1) 1.3740
Support (2) 1.3700
Support (3) 1.3681
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Trading tip for GBP/USD for March 31 - April 01, 2021
Buy if rebound 1.3740 (Fibonacci 61.8%), and buy above 1.3770 , with take profit at 1.3793 and 1.3855, stop loss below 1.3700.
Sell if pullback at 1.3895 (Strong resistance), with take profit at 1.3780, and 1.3740, stop loss above 1.3930.
