FX.co ★ Trading Signal for GBP/USD for April 26 - 27, 2021: Sell Below 1.3916

In the ealry American session, the GBP / USD pair charts is trading below the SMA of 21 according to the 4-hour chart, and within a downtrend channel, which could be a downward correction movement to the EMA of 200 in the next few hours.

Lieutenant Governor Ben Broadbent said he foresees very rapid growth in the UK for at least the next two quarters. Although this comment is encouraging, however, technically we can see that the British pound is still below the psychological level of 1.40. So, there could be a bearish movement in the medium term to 1.35.

The Fed will leave its policy unchanged and could begin laying the groundwork to reduce its bond purchases, something that would boost the dollar. This data could also give GBP / USD downward pressure, so the key is the 1.40 level, below this zone, there will be short opportunities.

In the charts above, we note that the GBP / USD pair before this retracement left a Doji candle below 4/8 of murray around 1.3916 and then fell. This is a sign that the downward movement could continue until the support of EMA 200 around 1.3825.

On the other hand, a pullback towards 1.3916 will be a selling opportunity, given that the top of the bearish channel converges there, and an area of strong resistance.

On the other hand, below the 21 SMA around 1.3890, it is also a good selling opportunity. The eagle indicator is showing bearish signal.

Support And Resistance Levels For April 26 - 27, 2021

Resistance (1) 1.3929

Resistance (2) 1.3965

Resistance (3) 1.3986

Support (1) 1.3867

Support (2) 1.3840

Support (3) 1.3828

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Trading tip for GBP/USD for April 26 - 27, 2021

Sell if pullback 1.3916 (4/8 of murray) with take profit at 1.3860 and 1.3825 (EMA 200), stop loss above 1.3851.

Sell below 1.3890 (SMA 21) with take profit at 1.3825 (EMA 200), stop loss above 1.3925.