In the early American session, the GBP / USD pair is trading below the strong resistance of 1.4188 and above the EMA of 200 and 8/8 of murray. The pair is showing indecision below the last resistance that could exert some downward pressure. A break of 1.4160 could confirm this move to the downside.
The British pound could suffer some weakness following a long winning streak as it received some disappointing news earlier in the day. The UK may have to delay its plan to fully reopen the national economy on June 21, amid the spread of the Indian strain. The easing of lockdown measures could be postponed until July 5.
In the 4-hour chart, we see the 1.4188 / 90 area as strong resistance. We have circled all the opportunities to break this level, but the GBP / USD pair has failed, and from there it has made a bearish retracement.
We certainly expect the same to happen now, in the face of disappointing data from the UK. The strong resistance zone could exert downward pressure dragging the price down below 1.4160 and 1.4160, targeting 1.4099 (7/8 Murray).
A move above this strong resistance level at 1.4188 will open the way to the resistance test at 1.4222 (+1/8). Should GBP / USD settle above 1.4220, it will head towards the next resistance at 1.4252.
On the contrary, below 1.4160 there is the SMA of 21, the EMA of 200 and the 8/8 of Murray. A consolidation or a break below this level could be a good opportunity to sell with targets at 1.4090.
Support and Resistance Levels for June 09 – 10, 2021
Resistance (3) 1.4246
Resistance (2) 1.4215
Resistance (1) 1.4182
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Support (1) 1.4119
Support (2) 1.4087
Support (3) 1.4055
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Trading tip for GBP/USD for June 09 - 10, 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 1.4190, (Strong resistance), with take profit at 1.4222 (+1/8), and 1.4152 stop loss below 1.4152.
