FX.co ★ Trading Signal for GBP/USD for April 29 - 30, 2021: Key level 1.3977

At the opening of the Asian session, the GBP/USD pair is trading above the SMA of 21 and below the 5/8 of Murray, after having broken the strong resistance of 1.3916.

The pound sterling reached the level of 1.3977 5/8 Murray zone that acts as a strong resistance, and very close to the psychological level of 1.40. The upward movement of the pair was due to the comments of the Fed Chairman, Jerome Powell, that were mostly optimistic. However, at the same time, he again repeated his cautious message about the economic recovery and the future of inflation and employment.

Jerome Powell's speech was expected by traders since the beginning of the week, although they were certain that there would be no significant changes. The US dollar broke its support of 4/8 of Murray and at this moment it is consolidating at the weekly support of around 90.37.

On the technical level, we note that the GBP/USD pair remains with an upward trend. It is likely to break the 1.40 level for a new advance to the 1.41 area. Perhaps there will be a correction to the support level of 1.3916, which sometimes acts as strong resistance.

The eagle indicator is showing a slightly bearish signal, we have traced the bearish signal that was activated several days ago. The market is likely to make some technical corrections before a new bullish momentum to break the 1.40 level.

The market is likely to remain bullish only if it remains above the 21 SMA, which now sits at 1.3901, a bounce at this point will give the market strength to seek the 1.40 and 1.41 zone in the medium term.

On the contrary, a break below the 21 SMA and the 200 EMA located at 1.3827, a fall of the pair. The pair may test the support of 1.3793 (2/8) and 1.3732 ( 1/8), of Murray.

Support And Resistance Levels For April 29 - 30, 2021

Resistance (1) 1.3972

Resistance (2) 1.4002

Resistance (3) 1.4002

Support (1) 1.3911

Support (2) 1.3876

Support (3) 1.3820

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Trading tip for EUR/USD for April 29 - 30, 2021

Sell below 1.3977 (5/8 of murray) with take profit at 1.3905 (SMA 21), stop loss above 1.4010.

Buy if rebound 1.3905 (SMA 21 and 4/8 of murray) with take profit at 1.3977, stop loss 1.3870.