FX.co ★ Technical Analysis of GBP/USD for February 23, 2021

The GBP/USD pair broke resistance which turned to strong support at the level of 1.3886 yesterday.

The level of 1.3886 coincides with 61.8% of Fibonacci, which is expected to act as major support today.

Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 61.8% Fibonacci - 1.3886.

Currently, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3886 and 1.4257.

On the H1 chart, resistance is seen at the levels of 1.4183 and 1.4257. Also, it should be noticed that, the level of 1.3886 represents the daily pivot point.

Therefore, strong support will be formed at the level of 1.3886 providing a clear signal to buy with the targets seen at 1.4100.

If the trend breaks the support at 1.4100 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.4183 in order to test the daily resistance 2.

Also, it should be noticed that the double top is set at 1.4085. Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.

This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.

If the pair succeeds to pass through the level of 1.4183, the market will indicate a bullish opportunity above the level of 1.4257. However, stop loss is to be placed below the level of 1.3825.