FX.co ★ Trading signals for GBP/USD on March 1-2, 2022: buy above 1.3427 or sell below 1.3400 (symmetrical triangle)

Early in the Asian session, GBP/USD opened with a bearish Gap, from the high that closed Friday at 1.3409 to yesterday's opening price at 1.3308 (105 pips). This GAP occurred in all currency crosses due to the events of the weekend around the Ukraine crisis.

Optimism about the negotiations between Ukraine and Russia, which began on Monday at the Belarusian-Ukrainian border, led to some stability in financial markets. This data helped the GBP/USD pair to bounce and cover the full bearish GAP.

Following the closing of the bearish gap, GBP/USD seems to have found interim support above the 21 SMA around 1.3400.

Currently, the British pound is trading around 1.3417. On the 4-hour chart, you can see the formation of a symmetrical triangle pattern. A sharp break above 1.3427 (4/8 Murray) could lead to a bullish push towards 5/8 Murray and the 200 EMA at 1.3484.

Conversely, a break below the symmetrical triangle and below the 21 SMA located at 1.3400 will be the start of a bearish move. Should this event occur, GBP/USD could fall back towards the support 2/8 Murray at 1.3305 and to the low February 24 at 1.3270.

The eagle indicator has reached the 95-point zone in yesterday's American session. In the next few hours, a technical correction is likely only if the British pound consolidates below 1.3400.

Our trading plan is to buy above the 4/8 Murray around 1.3427 or sell below the 21 SMA around 1.3400.

Support and Resistance Levels for March 01- 02, 2022

Resistance (3) 1.3610

Resistance (2) 1.3506

Resistance (1) 1.3460

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Support (1) 1.3384

Support (2) 1.3338

Support (3) 1.3305

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Scenario

Timeframe H1

Recommendation: sell below

Entry Point 1.3400

Take Profit 1.3366; 1.3305

Stop Loss 1.3445

Murray Levels 1.3488(5/8), 1.3427(4/8) 1.3366(3/8), 1.3305(2/8)

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