At the beginning of the American session, GBP/USD is trading at 1.3509, below the 200 EMA and above 5/8 Murray.
The British pound has strong support at the zone of 1.3488. On the H4 chart, a double bottom has formed around this area.
News that Russia could invade Ukraine this week is causing investors to seek safe haven in the US dollar.
This could cause investors to stop buying GBP/USD and an acceleration to the downside could occur towards the support level at 1.3427 (4/8 Murray) and at a low of Jan 27 at 1.3366.
GBP/USD is expected to remain consolidated above 3/8 Murray in the coming hours. That will give us the opportunity to buy with targets towards the 21 SMA located at 1.3550.
On the other hand, a sharp break below 1.3488 could cause an acceleration to the downside towards 1.3427 and even 1.3366.
In case bullish sentiment returns to the market, the area of 1.3550 emerges as the initial barrier that coincides with SMA 21. A close above this level on the daily chart could give us a strong bullish momentum towards 1.3610 (7/8 Murray)
The market sentiment report shows that there are 52.82% of traders who are buying the GBP/USD pair. This is a negative sign. If this figure is increasing, a drop in the pair could occur in the coming days.
Support and Resistance Levels for February 14 - 15, 2022
Resistance (3) 1.3604
Resistance (2) 1.3603
Resistance (1) 1.3549
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Support (1) 1.3588
Support (2) 1.3462
Support (3) 1.3427
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Scenario
Timeframe H4
Recommendation: Buy if rebound
Entry Point 1.3488
Take Profit 1.3509, 1,3488, 1.3427
Stop Loss 1.3525
Murray Levels 1.3610 (7/8), 1.3549(6/8), 1.3488 (5/8), 1.3427 (4/8)
Alternative scenario
Timeframe H4
Recommendation: sell if it pullback
Entry Point 1.3550
Take Profit 1.3427
Stop Loss 1.3590
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