The GBP/USD pair on the one-hour charts is trading below the bearish trend channel, very close to the resistance of the bearish channel at 1.3715, and above the 21 SMA and the EMA of 200.
As you can see on the one-hour chart, the GBP/USD pair has a bearish channel, which puts pressure on the pair. If it remains below 1.3715, the bearish force would remain in the short term. However, after a break above 1.3725 and, a consolidation above this level, we expect a bullish move to +1/8 murray at 1.3793.
We have to monitor the 1.3715 area. It is the key leve as above it, the bullish force could push the price to the level of 1.3793. Below this level, a retracement to the 200 EMA around 1.3660 could occur.
A break below the 21 SMA and 200 EMA, around 1.3660, could be a bearish signal to sell with targets at 1.3549 , level of Murray 7/8.
The market sentiment report shows 56% of operators who are selling the GBP/USD pair. This is a sign that the pair could have a correction in the short term until the 1.35 zone.
Support And Resistance Levels For January 26 - 27, 2021
Resistance (1) 1.3755
Resistance (2) 1.3788
Resistance (3) 1.3844
Support (1) 1.3647
Support (2) 1.3604
Support (3) 1.3562
Trading ideas for GBP/USD on January 26 - 27, 2021
Sell below 1.3715 with take profit at 1.3660 and 1.3590 and stop loss above 1.3745.
Buy above 1.3725, with take profit at 1.3793 (+1/8 of murray) and stop loss below 1.3690.
Sell if the price breaks the EMA 200 at 1.3660, with take profit at 1.3612 and 1.3545 (7/8 of murray) and stop loss above 1.3695.