The GBP/USD pair is currently trading in the zone of SMA 21 around 1.3687. It remains above the uptrend channel on 4-hour charts. Meanwhile, the eagle indicator is showing a bearish signal, and reaching the oversold level.
The 1.3705 level is key as the 21 SMA is located there on the 4-hour charts. The British pound is expected to remain above this level for bullish momentum to the +1/8 area of Murray around 1.3793.
On the contrary, below the 21 SMA around 1.3690, the bearish pressure could take it to the support level of the uptrend line around 1.3670 which coincides with Murray's 8/8.
A sharp breakout and a consolidation on the 4-hour charts below 1.3670 would give a fresh start to a bearish move, to the 200 EMA area around 1.3584 and 1.3549.
The market sentiment report for today February 2 shows a figure of 51.65% of traders who are selling the GBP / USD pair, this is a sign that a technical correction may occur up to the 200 EMA support zone, around 1.3549.
Support And Resistance Levels For February 02 - 03, 2021
Resistance (1) 1.3724
Resistance (2) 1.3791
Resistance (3) 1.3825
Support (1) 1.3633
Support (2) 1.3588
Support (3) 1.3521
Trading tip for GBP/USD for February 02 - 03, 2021
Sell below 1.3690 (SMA 21) with take profit at 1.3650 and 1.3584 (EMA 200), stop loss above 1.3740.
Buy above 1.3705 (SMA 21) with take profit at 1.3740 and 1.3793 (+1/8 of Murray), stop loss below 1.3670.