FX.co ★ Trading signal for GBP/USD for September 10 - 13, 2021: Sell below 1.3916 (4/8)

The GBP / USD pair is trading close to the high reached on Friday last week around 1.3884. This is its second consecutive rise, but the pair could be reaching overbought levels again as the eagle indicator is approaching 95, points.

The pound sterling asserts strength due to the weakness of the US dollar. In daily charts, the pair has not been able to climb over the moving average of 21, so it falling below this level. In addition to this, the UK Gross Domestic Product showed a modest 0.1% uptick on month, well below the previous 1% and the 0.6% expected. On a positive note, industrial production increased 3.8% YoY and 1.2% MoM, better than anticipated.

The British pound is located above the SMA of 21 and above the EMA of 200. Now it is approaching the strong resistance of 1.3916. This level will be a barrier for the pair. If it fails to consolidate above this zone, there will be a good opportunity to sell with targets at 1.3855 and 1.3805 (200 EMA).

On the contrary, in case of a consolidation above 1.3916, the British pound can have as its next target in the resistance zone of 1.4038. There is the line of 6/8 murray that also represents a psychological level.

According to the chart, our outlook will continue to be bearish as long as the trading instrument remains or trades below 4/8 of murray, so we can sell, since the eagle indicator is showing a bearish signal. If the GBP / USD pair consolidates above 1.3916, we must avoid selling.

Support and Resistance Levels for September 10 - 13, 2021

Resistance (3) 1.3986

Resistance (2) 1.3920

Resistance (1) 1.3875

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Support (1) 1.3815

Support (2) 1.3768

Support (3) 1.3705

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Trading tip for GBP/USD for September 10 - 13, 2021

Sell if there is a pullback at 1.3916 or sell below 1.3885 (double top), with take profit at 1.3855 and 1.3805 (EMA 200), stop loss above 1.3916.