In a 1-hour chart, the GBP / USD pair is trading under strong downward pressure, after having broken the strong support of 2/8 of murray located at 1.3793. Now we notice a slight consolidation in the zone of 1.3700. Could it be a good moment to buy or should we wait for the 1.3672 level?
Given that the key and strong support is the 1.3671 zone, to shorten the risk of a missed entry, it will be a good idea to buy in the 0/8 zone of murray. On the contrary, if the price continues to consolidate above 1.3700, we could buy with targets towards the 21 SMA located at 1.3746. The break of this level may give GBP / USD a bullish momentum to the 200 EMA.
At the fundamental level, investors remain concerned about the recent increase in cases of the Delta strain, the highly contagious variant of COVID-19. Such fears have caused a drop in all crosses against the US dollar. Its index has strengthened to the high of 93.01.
The increasing cases of COVID in the United Kingdom is making it difficult for this pair to continue its climb. The pair could enter a consolidation phase between 1.3670 and 1.39 in the short term.
According to the 1-hour chart, we note that the eagle indicator is in the oversold zone which suggests that an imminent correction towards the 2/8 murray level located at 1.3793 may occur in the next few hours.
Therefore, our recommendation is to buy above 1.3700, or if the pair rebounds from the 1.3672 area, with targets at 1.3745 and 1.3822.
Support and Resistance Levels for July 19 - 20, 2021
Resistance (3) 1.3821
Resistance (2) 1.3794
Resistance (1) 1.3727
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Support (1) 1.3692
Support (2) 1.3660
Support (3) 1.3625
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Trading tip for GBP/USD for July 19 - 20, 2021
Buy above 1.3700, with take profit at 1.3745 (SMA 21) and 1.3822 (EMA 200), stop loss below 1.3670.
Buy if rebound 1.3672, with take profit at 1.3745 (SMA 21) and 1.3822 (EMA 200), stop loss below 1.3635.
