FX.co ★ Trading Signal for GBP/USD for September 02 - 03, 2021: Key Level 1.3795 (EMA 200)

The British pound is struggling at 1.3800. Below this level at 1.3795 there is the 200 EMA and the resistance line of 2/8 of murray. This area has become strong resistance for the GBP / USD pair. We see on a 4-hour chart that there has been several attempts to break and consolidate above this level, but the currency pair failed to do so.

The British pound has encountered strong barrier around 1.3793. At this time of writing, it is making a small retracement below this level. If it fails to consolidate above the 1.3805 level, a correction is likely to follow towards the support line of the bullish channel around 1.3752.

The GBP / USD pair is trading inside an uptrend channel that is projected from the low of 1.36 on August 20. The price is making higher lows and highs, but the move is limited below the 200 EMA. GBP/USD is expected to remain within this channel for a long time due to the weakness of the US dollar.

A sharp break above the 200 EMA and a consolidation in the 4-hour charts above 1.3805 will be a good opportunity to buy with targets at 1.3855. If the bullish force prevails, we may continue buying until 1.3916 level of 4 / 8 murray.

The upward momentum is fading. The eagle indicator that measures the volume and strength of the market is showing a sign of the overbought market suggesting a probable correction in the next few hours. On the other hand, as the price remains above 2/8 of a murray, it could signify a new bullish wave and it will be a good opportunity to buy.

On the negative side, it could happen that the British pound does not have enough strength to break and consolidate above 1.38. Then, a fall below the SMA of 21 located at 1.3760 may occur. So, it will be a signal of a trend change so that the price may fall to the support of 1.367, line of 0/8 murray.

Our outlook will continue to be bullish. So, according to the 4-hour chart we can buy at the levels we have indicated with targets at 1.3855 and 1.3916, but first we should wait for a technical correction according to the eagle indicator.

Support and Resistance Levels for September 02 - 03, 2021

Resistance (3) 1.3916

Resistance (2) 1.3855

Resistance (1) 1.3809

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Support (1) 1.3763

Support (2) 1.3732

Support (3) 1.3687

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Trading tip for GBP/USD for September 02 - 03, 2021

Buy above EMA 200 at 1.3805, with take profit at 1.3855 and 1.3916 (4/8), stop loss below 1.3770.

Buy if the pair rebounds at 1.3752, with take profit at 1.3795 and 1.3855 (3/8), stop loss below 1.3718.