The GBP/USD pair is trading below the 21 SMA (1.3813) and below the resistance of 2/8 murray. The bias will continue to be bearish as long as it is below 1.3815. However, it could be considered a correction for a new bullish wave.
We can point out that the British pound, after having broken the downtrend channel, is making a correction pullback to then continue with the upward movement. You can see on the chart that the downtrend channel has now become its support.
Therefore, if GBP / USD rebounds or consolidates above 1.3780, it will be a good opportunity to buy with targets at 1.3916 (4/8) area of strong resistance.
Our outlook is bullish for the GBP / USD pair due to the encouraging news from the UK. Prime Minister Boris Johnson laid out plans for the last step to lift the restrictive measures in the UK. The news could certainly give the pair a strong bullish momentum and in the short term it could reach the psychological level of 1.40.
Therefore, we recommend buying above 1.3780, or a consolidation above the 21 SMA will be a good opportunity to buy with targets at 1.3916 and up to the 200 EMA around 1.4028.
The eagle indicator is showing a slightly bullish signal, just above 1.3815. The bullish strength of the pair could be clarified.
Support and Resistance Levels for July 07 - 08, 2021
Resistance (3) 1.3995
Resistance (2) 1.3935
Resistance (1) 1.3869
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Support (1) 1.3780
Support (2) 1.3743
Support (3) 1.3695
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Trading tip for GBP/USD for July 07 - 08, 2021
Buy if the price rebounds at 1.3780, with take profit at 1.3850 and 1.3916 (4/8), stop loss below 1.3745.
Buy above 1.3815 (SMA 21), with take profit at 1.3850 and 1.3916 (4/8), stop loss below 1.3775.