According to a 4-hour chart, the GBP / USD pair is trading below the 200 EMA and below the 21 SMA, after having broken the uptrend channel. It is now under downward pressure. The pair is also below the resistance line of 2/8 of murray that adds more selling pressure to the pair.
The 4-hour chart shows that the downward pressure persists as the price of the GBP / USD pair is below the moving averages of 200 and 21. It could mean a negative signal for the pair. There is a probability of a decline to the support of the 7/8 line of murray. If the bearish force prevails, it could drag down the price to the support of 1.3671.
The fall of the British pound is due to the recovery of the US dollar and also to the Brexit-related problems, in particular, the tax increase plan of British Prime Minister Boris Johnson.
For the British pound to enter a bullish phase, it should consolidate above 1.3810, and from this level it could rise to the resistance of 1.3916. In the medium term, it could reach the psychological level of 1.40.
As long as the pair is below 1.3810, whenever it approaches this level, it will be a good opportunity to continue to sell the GBP / USD pair the target at the 0/8 Murray support.
The immediate support around 1.3732 is a good point for a technical bounce. We expect a consolidation around this area for a GBP / USD recovery. It will be an opportunity to buy with targets at the resistance of 1.3810 and 1.3916.
The technical reading of the eagle indicator is showing a bearish signal. The price is below the overbought zone that could support our bearish outlook of a decline in the GBP / USD pair in the short term.
Support and Resistance Levels for September 08 - 09, 2021
Resistance (3) 1.3923
Resistance (2) 1.3889
Resistance (1) 1.3809
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Support (1) 1.3746
Support (2) 1.3664
Support (3) 1.3598
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Trading tip for GBP/USD for September 08 - 09, 2021
Sell if pullback at 1.3810 (EMA 200), with take profit at 1.3732 (1/8), stop loss above 1.3845.
Buy if the pair rebounds at 1.3732 (1/8), with take profit at 1.3795 and 1.3855, stop loss below 1.3700.
