FX.co ★ Technical Analysis of GBP/USD for March 05, 2021

Overview :

The GBP/USD pair posted a weekly reversal candle at an important short-term level from the spot of 1.4240 and 1.3982.

The high price of the candle was just a few pips below the strongest resistance levels of 1.4240, 1.4091 and 1.3982.

The GBP/USD pair broke support which turned to strong resistance at the level of 1.3982 yesterday.

The level of 1.3982 coincides with 61.8% of Fibonacci, which is expected to act as major resistance today.

Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend.

From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.3982. Currently, the price is in a bearish channel.

According to the previous events, we expect the GBP/USD pair to move between 1.3982 and 1.3565.

On the H1 chart, resistance is seen at the levels of 1.3982 and 1.3902. Also, it should be noticed that, the level of 1.3902 represents the daily pivot point.

Therefore, strong resistance will be formed at the level of 1.3982 providing a clear signal to sell with the targets seen at 1.3800.

If the trend breaks the support at 1.3800 (first support) the pair will move downwards continuing the development of the bearish trend to the level 1.3565 in order to test the daily support 2 - last bearish wave, bottom. However, stop loss is to be placed above the level of 1.4240.