GBP/USD started to rise after falling to its lowest level of 2022 below 1.3300.
The latest news suggests that Russia is preparing to take a step towards Kiev. A Russian attempt to overthrow the Ukrainian government could further weigh on sentiment and cause the GBP/USD pair to fall to the psychological level of 1.3000.
The dollar index (USDX) is trading at its highest level since late January, suggesting that the greenback is capitalizing on safe-haven money flows.
USDX after reaching 97.71 is making a technical correction and is likely to drop below 96.87. This will give GBP/USD bullish strength and could rally to the top of the channel that was broken at 1.3488.
On the 4-hour chart, we can see that the British pound is consolidating around 1.3368. As long as it remains trading above this level, there is a chance of a recovery of GBP/USD with targets at 4/8 Murray and up to 5/8 Murray at 1.3488.
Conversely, a break below 1.3350 could accelerate the move down towards the low of 1.3260.
The eagle indicator has reached the oversold zone and it is likely that in the next few hours the British pound will find a technical correction towards SMA 21 located at 1.3501.
According to the H4 chart, the GBP/USD trend remains bearish and as long as it remains below the 200 EMA located at 1.3529 there is a chance that any technical bounce will be seen as an opportunity to continue selling.
Support and Resistance Levels for February 25 - 28, 2022
Resistance (3) 1.3488
Resistance (2) 1.3427
Resistance (1) 1.3396
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Support (1) 1.3342
Support (2) 1.3305
Support (3) 1.3245
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Scenario
Timeframe H4
Recommendation: buy above
Entry Point 1.3366
Take Profit 1.3427; 1.3488
Stop Loss 1.3310
Murray Levels 1.3549 (6/8), 1.3488(5/8) 1.3427(4/8), 1.3366(3/8)
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