In the early hours of the American session, the GBP / USD pair is trading below Murray's 4/8 pivot, the key level of 1.3916 according to the 4-hour chart. This level at times has acted as strong resistance and support, still maintaining the uptrend, given that it is located above the SMA of 21.
The US dollar has halted its decline and is now consolidating above Murray's 4/8, located at 90.62 it has found some support thanks to a modest rally in US Treasury yields, which now stands at 1.58 %.
This, in turn, is putting some pressure on the GBP / USD pair, which does not allow it to overcome the barrier of the psychological level of 1.40.
On the other hand, some analysts and investors have strong expectations that the Fed will keep interest rates low for a longer period. This could again give the British pound a bullish momentum to challenge the 1.40 level. We must wait until tomorrow in the American session for the policy update to be published by the Fed.
On the chart, you can see that GBP / USD has strong resistance at 1.3916, we expect it to keep the pair under downward pressure below that level and may fall to the 200 EMA located at 1.3825.
On the contrary, a bullish break above 1.3920 and consolidation there could indicate a bullish momentum, suggesting looking for the resistance zone and psychological level of 1.40.
The eagle indicator is in the neutral zone pointing to bullish momentum for GBP / USD in the next few hours.
Support And Resistance Levels For April 27 - 28, 2021
Resistance (1) 1.3928
Resistance (2) 1.3960
Resistance (3) 1.3986
Support (1) 1.3863
Support (2) 1.3831
Support (3) 1.3799
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Trading tip for GBP/USD for April 27 - 28, 2021
Sell below 1.3910 (Strong resistance) with take profit at 1.3825 (EMA 200), stop loss above 1.3935.
Buy above 1.3920 (Strong resistance) with take profit at 1.3977 (5/8 of murray), stop loss below 1.3879.
