The one-hour chart shows that the GBP/USD is trading within a downtrend channel, after having found strong support at the 2/8 Murray line. It is making a slight technical rebound.
On Wednesday, the British pound had an upward momentum from 1.3800, when it touched the lower line of the bearish channel, and reached the 1.3880 level of the 200 EMA, which at that time was acting as a barrier. This happened amid the CPI figures, which caused the US dollar to fall sharply and gave the GBP/USD pair an upward momentum.
The British pound may face a bearish bias in the short term, as it is trading below the 200 EMA and the 21 SMA. However, for now it is controlled by the support of 2/8 murray located at 1.3793, which could stop the fall of the pair.
A consolidation below 2/8 of a murray would increase the downward pressure, but there is still hope for a technical rebound at the 1.3772 level, as the lower line of the bearish channel is located there. This point could be considered as an opportunity to buy, only if we observe that it acts as support.
In the United Kingdom, the industrial production figures for June again showed a rise (0.7%) that was above the expectations (0.3%). The preliminary estimate of its Gross Domestic Product for the second quarter came out as expected - 4.8%. Despite this favorable data, the British pound is under downward pressure and for now there is no sign of a sustained rebound.
The reading of the eagle technical indicator that measures the volume and relative strength of the market is showing a bullish signal. Therefore, any bounce towards the support of 1.3793 or 1.3772, will be an opportunity to buy with targets at the 200 EMA located at 1.3877.
Support and Resistance Levels for August 13 - 16, 2021
Resistance (3) 1.3877
Resistance (2) 1.3852
Resistance (1) 1.3822
----------------------------
Support (1) 1.3768
Support (2) 1.3739
Support (3) 1.3684
***********************************************************
Trading tip for GBP/USD on August 13 - 16, 2021
Buy above 1.3793 (2/8), with take profit at 1.3850 and 1.3877 (EMA 200), and stop loss below 1.3757.
Buy in case of a rebound at 1.3772 (trend line), with take profit at 1.3850 and 1.3877 (EMA 200), and stop loss below 1.3735.
