Forex Analysis:::2021-05-07T11:30:55
Technical Analysis of GBP/USD for May 07, 2021
Overview :
- After breaking the support at 1.3937. The GBP/USD pair has set strong resistances at the levels of 1.3937 because the support has become a resistance.
- So, the price has already formed the strong resistance at the level of 1.3937 and the pair probably will try to approach from it in order to test it again.
- However, if the pair fails to pass through the level of 1.3937, the market will indicate a bearish opportunity below the new strong resistance level of 1.3937 (the level of 1.3937 coincides with the ratio of 78% Fibonacci).
- Moreover, the RSI is becoming to signal a downward trend, as the trend is still showing strong above the moving average (100) and (50).
- Thus, the market is indicating a bearish opportunity below the 1.3937 level so it will be a good sign to sell at 1.3937 with the first target of 1.3867.
- It will also call for a downtrend in order to continue towards 1.3841. The daily strong support is seen at 1.3800 (double bottom).
- However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.3975.
- On the other hand, it is also worth noting that the price at 1.3800 will possibly form a strong support.
- Accordingly, saturation around 1.3800 to rebound the pair is likely to occur. Furthermore, it is possible that the market is going to start showing the signs of bullish market.
- Hence, it will be a good sign to buy above 1.3800 with the first target of 1.3900 and continue towards 1.3937 and 1.3975. In the long term we guess a range between the levels of 1.3800 and 1.3975.
Mourad El Keddani
Analyst InstaForex
