Overview :

The GBP/USD pair Rallying from the region of 1.3724 and 1.3823, sterling strong all-round since the 3rd February 2021. Sterling’s implicting strength, however, is more obvious against US Dollar.

The GBP/USD pair is taking advantage of the optimistic market mood to gain ground and recovery from the bottom 1.3823.

The GBP/USD pair is unchanged that correction from 1.3823 could extend higher from the ratio 38.2% retracement of 1.3823 to 1.3902 at 1.3867. It’d look for some support from there to bring rebound.

Rise from the level of 1.3823 medium term bottom is in progress. Further rally would be seen to 1.3902 resistance and above.

A clear break at 1.3902 there, it will carry larger bullish implications and target 61.8% retracement of 1.3982.

Further close above the high end may cause a rally towards 1.3982. Nonetheless, the weekly resistance level and zone should be considered.

The level of 1.3724 coincides with 23.6% of Fibonacci, which is expected to act as major support today.

Since the trend is above the 23.6% Fibonacci level, the market is still in an uptrend.

From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.3724. Currently, the price is in a bullish channel.

According to the previous events, we expect the GBP/USD pair to move between 1.3724 and 1.3982.

On the H4 chart, resistance is seen at the levels of 1.3902 and 1.3982. Also, it should be noticed that, the level of 1.3902 represents the daily pivot point.

Therefore, strong support will be formed at the level of 1.3724 providing a clear signal to buy with the targets seen at 1.3902. If the trend breaks the resistance at 1.3902 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.3982 in order to test the daily resistance 2.

On the upside, break of 1.3982 minor resistance will argue that the correction has completed, and bring retest of 1.4091 high.

On the downside, break of 1.3724 resistance turned support is needed to be first indication of completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.

The material has been provided by InstaForex Company –

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