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FX.co ★ Technical analysis of GBP/USD for February 17, 2021

Technical analysis of GBP/USD for February 17, 2021

Technical analysis of GBP/USD for February 17, 2021

Overview :

  • The GBP/USD's pair correction from the top price of 1.3948 is extending deeper - closed at the price of 1.3840.
  • Strong support should be seen in 1.3816/1.3775 zone to contain downside. We guess it is the last bearish wave at 1.3775 - 1.3703.
  • Today, the GBP/USD pair has faced strong support at the levels of 1.3816 and 1.3775.
  • Hence, the strong support has been already faced at the level of 1.3775 and the pair is likely to try to approach it in order to test it again and form a double bottom.
  • Hence, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.3775; to form a bullish channel.
  • According to the previous events, we expect the pair to move between 1.3775 and 1.3948. Also, it should be noted major resistance is seen at 1.3882, while immediate resistance is found at 1.3948.
  • Then, we may anticipate potential testing of 1.3882 to take place soon.
  • Moreover, if the pair succeeds in passing through the level of 1.3882, the market will indicate a bullish opportunity above the level of 1.3882. A breakout of that target will move the pair further upwards to 1.3948.
  • Buy orders are recommended above the area of 1.3816 with the first target at the level of 1.3882; and continue towards 1.3948.
  • On the upside, sustained break of 1.3861 will extend the up trend from 1.3861 to 1.3948 long term resistance next.
  • On the other hand, if the GBP/USD pair fails to break out through the support level of 1.3775; the market will decline further to the level of 1.3703 (daily support 3).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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