Before the opening of the European session, the GBP/USD pair is trading below +1/8 of Murray, an area of strong resistance and above the SMA of 21. It is trading laterally between a range of 1.4098 and 1.4220.
Yesterday, the pound sterling rebounded and reached the resistance level of 1.4221 amid the comments of Gertjan Vlieghe, the UK economist and member of the monetary policy committee of the Bank of England, He said the BoE could raise interest rates as early as the first quarter of next year if the labor market rebounds faster than expected.
On the 4H chart, the GBP/USD pair is likely to remain in the resistance zone and support zone that it has been trading since May 18. Therefore, we expect that in the next hour there will be a retracement to the support of the SMA of 21, located at 1.4151.
If GBP/USD breaks the 1.4151 level, we can continue to sell with targets at the 7/8 Murray support around 1.4099, this level will be a good buying opportunity.
The technical reading of the eagle indicator shows that the pair is in an oversold phase and it is likely that in the medium term. There could be a further bullish momentum to the 1.4282 zone, only if it consolidates above 1.4222.
Market sentiment shows 67.46% of operators who are selling the GBP/USD pair. This is a sign that if these percentages exceed 70%, the GBP/USD pair could strengthen the rises and go to 1.4377 (maximum 2018).
On the contrary, if sales regain prominence and break the lower base of the range, a bearish turn could occur, the first support at 6/8 to consider is around the psychological level of 1.4000.
Our recommendation is to sell now below 1.4220 or at the current level of 1.4193, with targets at 1.4151 and 1.4099. Below we leave our support and resistance levels.
Support and Resistance Levels for May 28 – 31, 2021
Resistance (3) 1.4308
Resistance (2) 1.4296
Resistance (1) 1.4227
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Support (1) 1.4158
Support (2) 1.4120
Support (3) 1.4070
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Trading tip for GBP/USD for May 28 - 31, 2021
Sell bellow 1.4222 (+1/8 of murray), with take profit at 1.4151 (8/8 and SMA of 21), stop loss above 1.4252.
Sell if breaks 1.4151(8/8 of murray), with take profit at 1.4099 (7/8), stop loss above 1.4185.
