Earlier in the European session, the GBP/USD pair hit the low of 1.3270. Rebounding from this level, it is has left a double bottom pattern. Currently, the price is above the line 2/8 Murray, below the 21 SMA and below a downtrend channel.
The second round of peace talks between Russia and Ukraine, which was scheduled for Wednesday, has been postponed to the end of the week. The market is likely to continue to react with strong volatility to any comments or news. The pound is likely to continue its bounce into the weekend only if it remains trading above 1.3300.
Ukraine's presidential adviser said that the date of the peace talks was being discussed. On the other hand, Russia said that it would not give in until it achieves its objectives regarding this invasion. Undoubtedly, the risk markets and stock markets will be the most affected and investors will surely take refuge in gold and the Japanese yen again.
According to the 4-hour chart, the British pound is bouncing and showing signs of recovery. As long as it keeps trading above the 2/8 Murray and above the double bottom pattern, a technical bounce is likely and the pair could reach the level 1.3375 (21 SMA).
Additionally, a break and consolidation above 1.3375 could cause a strong bullish movement, enabling the pair to reach the EMA 200 located at 1.3501. On the contrary, a return towards the support of 1.3270 could accelerate the downward movement and the pair could reach the level of 1/8 of Murray at 1.3244. If bearish pressure prevails, GBP/USD can go as far as the psychological level of 1.3000.
The eagle indicator has reached oversold levels and an imminent bounce towards 3/8 Murray at 1.33 66 is likely in the coming hours.
Our trading plan for the next few hours is to buy the British pound at current price levels above 2/8 Murray with targets at 13375, 1.3427 and 1.3501.
Support and Resistance Levels for March 02- 03, 2022
Resistance (3) 1.3486
Resistance (2) 1.3401
Resistance (1) 1.3351
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Support (1) 1.3305
Support (2) 1.3241
Support (3) 1.3216
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Scenario
Timeframe H4
Recommendation: buy above
Entry Point 1.3305
Take Profit 1.3366; 1.3427
Stop Loss 1.3260
Murray Levels 1.3488(5/8), 1.3427(4/8) 1.3366(3/8), 1.3305(2/8)
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