FX.co ★ Technical analysis of GBP/USD for February 24, 2021

Overview :

The GBP/USD pair will continue to rise from the level of 1.4083. The support is found at the level of 1.4083, which represents the 61.8% Fibonacci retracement level in the H1 time frame.

The price is likely to form a double bottom. Today, the major support is seen at 1.4083, while immediate resistance is seen at 1.4034.

Accordingly, the GBP/USD pair is showing signs of strength following a breakout of a high at 1.4150. So, buy above the level of 1.4150 with the first target at 1.4240 in order to test the daily resistance 1 and move further to 1.4300.

Also, the level of 1.4369 is a good place to take profit because it will form a new double top at the same time frame.

Amid the previous events, the pair is still in an uptrend; for that we expect the GBP/USD pair to climb from 1.4150 to 1.4369 in coming days.

At the same time, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.4034, a further decline to 1.3829 can occur, which would indicate a bearish market.

Conclusion :

We expect the GBP/USD pair to continue moving in the bullish trend from the support level of 1.4150 towards the target level of 1.4240. If the pair succeeds in passing through the level of 1.4240, the market will indicate the bullish opportunity above the level of 1.4240 in order to reach the second target at 1.4300, then 1.4369. However, the price spot of 1.4369 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the double top as long as the level of 1.4240 is not breached.