The British Pound (GBP / USD), in the American session is trading below the SMA of 21 and above the strong support of 7/8 at 1.3549, we have seen several attempts to break this level, so we could expect a technical rebound in the next few hours.
The GBP / USD pair is under strong downward pressure, at 8/8 Murray, which located at 1.3671, on the 4-hour chart you can see that the GBP / USD has not been able to consolidate above this level. Therefore, selling below this zone will be a good opportunity in the short term.
In the 4-hour chart of GBP / USD you can see that we have painted a yellow zone, this level is important to observe, if the pair is trading around or below this level, it will be a good selling opportunity, with objectives in the 6/8 of murray that coincides with the EMA of 200.
Our recommendation is to only sell, since the eagle indicator is giving a bearish signal, so we can sell if there is any technical rebound, a break below the 1.3549 support, it will be a good opportunity to sell until the 200 EMA at 1.3427 .
Support And Resistance Levels For January 07-08, 2021
Resistance (1) 1.3671
Resistance (2) 1.3738
Resistance (3) 1.3805
Support (1) 1.3536
Support (2) 1.3468
Support (3) 1.3401
Trading tip for GBP/USD for January 07-08, 2021
Sell below 1.3620 (SMA of 21) with take profit at 1.3549, stop loss above 1.3650.
Buy if rebound around 1.3549 (strong support), with take profit 1.3612 and 1.3670, stop loss below 1.3505.
Sell if pullback to 1.3645, with take profit at 1.3549 and 1.3427 (6/8 of murray),stop loss above 1.3680.
Sell if breaks 1.3549 (Strong support) with take profit at 1.3427 ( EMA 200), stop loss above 1.3585.