The GBP / USD pair this morning of the American session is rebounding after having found support in the 7/8 area of Murray and the 4 hour bearish channel, around 1.3564.
The BoE kept the interest rate at 0.1% and the bond-buying program at 895,000 million pounds, in a unanimous vote. The key was that the signs for the introduction of negative interest rates pointed out that this will not happen in the short term, which unleashed an upward momentum for the pound on all fronts.
At this moment it is trading at 1.3640, we expect it to continue its upward movement to the area of 1.3675, this level is key because there is the 8/8 of Murray and the SMA of 21, this resistance level is expected for new sales in the short term.
On the other hand, if it falls back to the 200 EMA area, it would be a good buying opportunity at this level, around 1.3605, as it will give the market more upward momentum in the short term.
Our recommendation is to sell below 1.3675, and buy above 1.3600, both levels are the points of resistance and support for the next few hours, therefore we expect the pair to trade within these ranges.
Support And Resistance Levels For February 04 – 05, 2021
Resistance (1) 1.3674
Resistance (2) 1.3710
Resistance (3) 1.3740
Support (1) 1.3633
Support (2) 1.3515
Support (3) 1.3582
Trading tip for GBP/USD for February 04 – 05, 2021
Buy if rebound around 1.3601 (EMA 200) with take profit at 1.3645 and 1.3675 (SMA 21), stop loss below 1.3560.
Sell if pullback at 1.3680/90 (SMA 21) with take profit at 1.3601 and 1.3549 (7/8), stop loss above 1.3705.
The material has been provided by InstaForex Company – www.instaforex.com
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