The GBP / USD pair, in the morning of the American session, in 4-hour charts is trading below the SMA of 21 and below a channel that exerts downward pressure, a few pips lower around 1.3895 is located a strong weekly support, a technical rebound could occur in the next few hours.
The US dollar is again showing signs of recovery, which caused the stock markets to fall significantly on Tuesday, causing many investors to take refuge in the world reserve currency.
This investor sentiment also affected currencies such as the GBP / USD pair, which should now make another attempt to break the key 1.3930 level, to have a bit of respite and go back to the psychological level of 1.40.
Conversely, if the GBP / USD pair trades below 1.3930 in the next few days, there could be a further bearish sequence up to 200 EMA support levels around 1.3813.
Also, the eagle indicator is showing an oversold signal, which could very likely be a technical bounce in the next hours.
Market sentiment shows that there are 55% of traders who are selling the GBP / USD pair, this is a sign that an upward movement could occur in the next few days when the pair has reached oversold levels.
Support And Resistance Levels For April 21 - 22, 2021
Resistance (1) 1.3956
Resistance (2) 1.3972
Resistance (3) 1.3985
Support (1) 1.3895
Support (2) 1.3872
Support (3) 1.3820
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Trading tip for GBP/USD for April 21 - 22, 2021
Buy if rebound 1.3895 (Strong Support), with take profit at 1.3930 and 1.3972, stop loss below 1.3860.
Buy if breaks 1.3930 (SMA 21), with take profit at 1.3972 and 1.4000, stop loss below 1.3895.
