FX.co ★ Technical Analysis of GBP/USD for March 18, 2021

Overview :

• The GBP/USD pair broke resistance which turned to strong support at the level of 1.3896 yesterday.
• The level of 1.3896 coincides with 38.2% of Fibonacci, which is expected to act as major support today.
• Since the trend is above the 38.2% Fibonacci level, the market is still in an uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.3896.
• Currently, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3896 and 1.4052.
• On the H1 chart, resistance is seen at the levels of 1.4016 and 1.4052. Also, it should be noticed that, the level of 1.3924 represents the daily pivot point.
• Also, it should be noticed that the double top is set at 1.4016. Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.
• Therefore, strong support will be formed at the level of 1.3924 providing a clear signal to buy with the targets seen at 1.4016.
• If the trend breaks the resistance at 1.4016 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.4052 in order to test the daily resistance 2. However, stop loss is to be placed below the level of 1.3800.