FX.co ★ Trading Signal for GBP/USD for April 05 - 06, 2021: Buy above 1.3863 - Bullish pennant

The GBP / USD pair, in the morning of the American session, is trading above the strong resistance of 1.3848, with targets at the 200 EMA and the Murray 2/8 located around 1.3916.

At this time of writing, the pair is trading at 1.3868, since it is above 1.3850. Our recommendation is to buy at current price levels, with targets at 1.3905 There is the strong resistance of 2/8 from Murray .

On the other hand, the British pound continues to lag behind with the support of the vaccination process in the United Kingdom.

There is growing expectation for Prime Minister Boris Johnson's announcements about the second phase of easing restrictions. This would allow the opening of shops, pubs and restaurants and hairdressers from April 12 and the possibility of reopening trips abroad.

As there are many expectations for a strong recovery in GBP / USD, there is likely to be a strong move in the next few hours to the zone of 1.3916, a key resistance level.

We may also notice the formation of a continuation pattern called a bullish pennant, if the pair sustains above 1.3750, our outlook will remain bullish, targeting 1.3916.

Our recommendation is to continue buying the pair, and sell near 1.3916, the eagle indicator is reaching overbought levels.

Support And Resistance Levels For April 05 - 06, 2021

Resistance (1) 1.3893

Resistance (2) 1.3941

Resistance (3) 1.3972

Support (1) 1.3877

Support (2) 1.3847

Support (3) 1.3808

***********************************************************

Trading tip for GBP/USD for April 05 - 06, 2021

Buy if rebound 1.3852 (Strong Support), with take profit at 1.3885 and 1.3916(2/8), stop loss below 1.3813.

Sell if pullback 1.3905 (EMA 200), with take profit at 1.3855 and 1.3810 (SMA 21), stop loss above 1.3940.