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FX.co ★ Technical analysis of GBP/USD for February 18, 2021

Technical analysis of GBP/USD for February 18, 2021

Technical analysis of GBP/USD for February 18, 2021

Overview :

GBP/USD :

Between 1.3948 and 1.3980 - The GBP/USD pair reached 1.3980 , which was the highest price for the pair on record. The GBP/USD pair has climbed along a steep, upward-sloping support channel since morning, the pair rose at an even more ambitious incline.

The GBP/USD pair is showing signs of frequency at the bottom lip of a key resistance range between 1.3903 and 1.3980. The pair also paused around these levels since two days.

The GBP/USD pair faced resistance at the level of 1.4010, while minor resistance is seen at 1.3980. Support is found at the levels of 1.3948 and 1.3903.

Also, it should be noted that a daily pivot point has already set at the level of 0.9887. Equally important, the GBP/USD pair is still moving around the key level at 1.3948, which represents a daily pivot in the M30 time frame at the moment.

Yesterday, the GBP/USD pair continued to move upwards from the level of 1.3948.

The pair rose from the level of 1.3948 (this level of 1.3829 coincides with the double bottom) to the top around 1.3970.

In consequence, the GBP/USD pair broke resistance, which turned strong support at the level of 1.3948. The level of 1.3948 is expected to act as major support today.

From this point, we expect the GBP/USD pair to continue moving in the bullish trend from the support level of 1.3948 towards the target level of 1.3980.

If the pair succeeds in passing through the level of 1.3980, the market will indicate the bullish opportunity above the level of 1.3980 in order to reach the second target at 1.4010 - then towards the obective 1.4022 (161.8 of Fibonacci retracement levels). Notwithstanding, if a breakout happens at the support level of 1.3829, then this scenario may be invalidated.

Forecast :

The market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.3948 with the first target at 1.3980. Then, the pair is likely to begin an ascending movement to 1.4010 mark and further to 1.4022 levels. The level of 1.4022 levels will act as strong resistance, and the double top is already set at 1.3990. On the other hand, the daily strong support is seen at 1.3829. If the GBP/USD pair is able to break out the level of 1.3829, the market will decline further to 1.3725.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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