FX.co - Technical Analysis of GBP/USD for April 23, 2021

2021-04-23T08:44:26

Relevance until2021-04-24

Overview :

The GBP/USD pair has faced strong resistances at the levels of 1.3944 because support had become resistance on April 23, 2021.
The strong resistance has been already formed at the level of 1.3944 and the pair is likely to try to approach it in order to test it again.
However, if the pair fails to pass through the levels of 1.3944 or/and 1.4008, the market will indicate a bearish opportunity below the new strong resistance level of 1.3944 (the level of 1.3944 coincides with a ratio of 78% Fibonacci).
Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).
Thus, the market is indicating a bearish opportunity below 1.4008 for that it will be good to sell at 1.3944 with the first target of 1.3827.
It will also call for a downtrend in order to continue towards 1.3784. The daily strong support is seen at 1.3715.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.4060.

Outside outlook :

If the trend is able to break out through the first resistance level at 1.4008, we should see the pair climbing towards the double top (1.4008) to test it.
Therefore, buy above the level of 1.4060 with the first target at 1.4103 in order to test the daily resistance 2 and further to 1.4175.
Also, it might be noted that the level of 1.4175 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.3827, a further decline to 1.3715 can occur which would indicate a bearish market.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade

Analytical expert

Mourad El Keddani

FX.co ★ Technical Analysis of GBP/USD for April 23, 2021