The GBP / USD pair, in the American session, is trading below the downtrend channel and above the EMA 200 located at 1.4160, with a slightly bearish bias, as it shows signs of exhaustion.
GBP / USD has failed to stay above the 1.42 resistance level and has once again started to pull back and has now reversed the positive movement of the previous day.
The British pound has been weighed down by doubts about the UK government's plan to reopen the economy on June 21, in light of the spread of the so-called Delta variant of covid. Such uncertainty is weakening the strength of the GBP/USD pair and it could fall to 1.40 levels in the short term.
On the other hand, investors remain concerned about mounting inflationary pressure. This, in turn, has prevented investors from opening aggressive bearish positions around USDX and also because of comments from the Fed, which it said is of a temporary character.
At the technical level, if GBP/USD breaks down and consolidates below 1.4160 (EMA 200), there could be a downward movement to the 1.4099 zone with the prospects of reaching the bottom of the bearish channel located at 1.4045.
On the contrary, if the GBP / USD pair trades above 1.4180, the bullish force could take it to the 1.4222 zone, where the strong resistance of +1/8 of murray is located.
The technical reading of the eagle indicator is showing a bearish signal and it is likely that in the short term there will be a correction movement towards the 1.40 area.
Our recommendation is to sell below 1.4161, there is both the SMA of 21 and the EMA of 200, with targets at 1.4099 and 1.4045. Above 1.4180 we must avoid selling.
Support and Resistance Levels for June 08 – 09, 2021
Resistance (3) 1.4284
Resistance (2) 1.4237
Resistance (1) 1.4205
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Support (1) 1.4125
Support (2) 1.4078
Support (3) 1.4046
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Trading tip for GBP/USD for June 08 - 09, 2021
Sell below 1.4160 (EMA 200 and SMA 21), with take profit at 1.4099 (7/8) and 1.4045, stop loss above 1.4195.
Buy above 1.4180, (trend line), with take profit at 1.4222 (+1/8), stop loss below 1.4145.
