Technical Analysis of GBP/USD for April 20, 2021

Overview :As expected, the GBP/USD pair continues to move upwards from the level of 1.3933. Yesterday, the pair rose from the level of 1.3879 (this level of 1.3879 is coincided with the golden ratio) to the top around 1.4008. As the price is still above the moving average (100), immediate support is seen at 1.3879, which respersents with 61.8% of Fibonacci. Today, the first support level is seen at 1.3933 followed by 1.3879, while daily resistance 1 is seen at 1.4047. According to the previous events, the GBP/USD pair is still moving between the levels of 1.3933 and 1.4047; for that we expect a range of 114 pips (1.4047 - 1.3933). Furthermore, if the trend is able to breakout through the first resistance level of 1.4047. We should see the pair climbing towards the next resistance (1.4083) to test it. If the GBP/USD pair fails to break through the resistance level of 1.4047, the market will decline further to 1.3933. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3879 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the support level of 1.3850, then this scenario may become invalidated. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.3800.