FX.co ★ Technical Analysis of GBP/USD for May 17, 2021

The trend of GBP/USD pair movement was controversial as it took place in the uptrend channel. Due to the previous events, the price is still set between the levels of 1.4025 and 1.4166, so it is recommended to be careful while making deals in these levels because the prices of 1.4025 and 1.4000 are representing the resistance and support respectively. Therefore, it is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market. In other words, buy deals are recommended above the price of 1.4025 with the first target at the level of 1.4166. From this point, the pair is likely to begin an ascending movement to the price of 1.4166 with a view to test the daily resistance at 1.4217.

However, if the pair fails to pass through the level of 1.4217, the market will indicate a bearish opportunity below the strong resistance level of 1.4217. In this regard, sell deals are recommended lower than the 1.4217 level with the first target at 1.4102. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.3886. On the other hand, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.0910 (notice that the major resistance today has set at 1.4303).