FX.co ★ Technical Analysis of GBP/USD for February 25, 2021

Overview :

The GBP/USD pair set above strong support at the level of 1.4083, which coincides with the 661.8% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 1.4083 because the trend is still showing strength above it.

Accordingly, the pair is still in the uptrend from the area of 0.6582 and 1.4083. The GBP/USD pair is trading in a bullish trend from the last support line of 0.6582 towards the first resistance level at 0.6676 in order to test it.

This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.4240 and further to the level of 1.4300.

The level of 1.4300 will act as second resistance and the double top is already set at the point of 1.4240 .

At the same time, if a breakout happens at the support levels of 1.4000 and 1.3950, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.

Forecast :

Buy orders are recommended above the area of 1.4083 with the first target at the level of 1.4240; and continue towards 1.4300. On the other hand, if the GBP/USD pair fails to break out through the resistance level of 1.4240; the market will decline further to the level of 1.3950 (daily support 2).