On February 1, a fractal formation is observed in the 1.3740 area. The GBP/USD pair is trading very close to the 21 SMA in 4-hour charts.
On several occasions, the GBP/USD pair has tried to consolidate above the 1.3740 level but failed to remain above it. The correction has occurred below this zone. This is a signal of a fractal, and the probability is that in the medium term a bearish movement will occur to the 1.3427 support zone.
We note that the GBP/USD pair is trading below the 21 SMA on 4-hour charts, also the eagle indicator is showing a bearish signal. Therefore, the key area to observe is the level of 1.3705, below this level there is likely to be a bearish move to the 1.3671 level support zone that coincides with the 8/8 of murray.
A break below 8/8 Murray and the break of the uptrend channel could accelerate the decline to the zone of 200 EMA around 1.3607.
The market sentiment report for today February 1 shows a percentage of 65% of traders who are selling the GBP / USD pair, this is a sign that the bullish force remains and an upward rebound could occur in the area of the EMA 200 around 1.3605.
Support And Resistance Levels For February 01 - 02, 2021
Resistance (1) 1.3744
Resistance (2) 1.3794
Resistance (3) 1.3817
Support (1) 1.3649
Support (2) 1.3605
Support (3) 1.3555
Trading tip for GBP/USD for February 01 - 02, 2021
Sell below 1.3705 (SMA 21) with take profit at 1.3670 and 1.3605 (EMA 200), stop loss above 1.3740.
Sell if pullback at 1.3740 (strong resistance) with take profit at 1.3672 and 1.3605 (EMA 200), stop loss above 1.3780.