The GBP / USD pair in the morning of the American session is trading, just above the 21 SMA, and below Murray’s 2/8 and below the 200 EMA, showing some consolidation between 1.3850 – 1.3916 .
Prime Minister Boris Johnson has announced that the next phase of the reopening is a step, in addition to bars, gyms, hair salons and other types of businesses will also return to normality scheduled for April 12. The move has come after Britain’s vaccination campaign has borne fruit, the result being that COVID-19 cases continue to fall.
This could give the British pound a strong bullish move, and break the 1.40 psychological level.
On a technical level, the eagle indicator is showing a sign of overbought market conditions, and pointing to the downside. So, GBP / USD is likely to experience a consolidation below 1.3916.
If the GBP / USD pair trades below the SMA of 21 located at 1.3845, it will be a good opportunity to continue selling until the support of 1.3795, there is located the EMA of 200 in 1-hour charts.
On the other hand, above 1.3855, it could continue its upward movement until the resistance zone of 1.3916, Murray’s 2/8 zone and EMA of 200, also at 1.3850, a dynamic support is located, since on previous occasions this It has been a strong resistance, consolidating above it can give the GBP the boost it needs.
Support And Resistance Levels For April 06 – 07, 2021
Resistance (1) 1.3885
Resistance (2) 1.3940
Resistance (3) 1.3972
Support (1) 1.3820
Support (2) 1.3773
Support (3) 1.3739
Trading tip for GBP/USD for April 06 – 07, 2021
Buy above 1.3855 (Strong Support and SMA 21), with take profit at 1.3916, stop loss below 1.3815.
Sell below 1.3835 (SMA 21), with take profit at 1.3780 (EMA 200-H1), stop loss above 1.3870.
The material has been provided by InstaForex Company – www.instaforex.com
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