FX.co ★ Trading Signal for GBP/USD for June 25 - 28, 2021: Sell Below 1.3962

The GBP / USD pair, after having reached the psychological level of 1.4000, is retreating. Yesterday, it fell to the low of 1.3888 as the British pound was affected by the monetary policy decision of the Bank of England. The authorities suspended interest rates and easing programs.

The Bank of England (BOE) does not intend to tighten monetary policy, at least until there is clear evidence that significant progress is being made in eliminating excess capacity and achieving the 2% inflation target in a sustainable manner.

Undoubtedly, this information puts pressure on the GBP / USD pair, and it is now trading below 4/8 of murray, a key area of strong support.

In charts with longer than 4 hours timeframes, we can see that GBP / USD is trading below a bearish channel, which has been drawn from the high at 1.4180. There have been several occasions that it has touched this level and has not been able to break it.

This channel will continue to exert pressure on the British pound. Therefore, an attempt to break this top will be a good opportunity to sell, with targets at 3/8 murray and 2/8.

On the 4-hour chart, the pair is below 21 SMA (1.3934), showing a bearish signal. It is likely to try to consolidate above this zone, but higher at 1.3962 it converges in a bearish channel. A pullback towards this area will be a good opportunity to sell.

The eagle technical indicator is showing a slightly bearish signal and with a laterality that could be a sign of consolidation.

Our recommendation is to sell below the bearish channel, in the areas of 1.3962, 1.3934 or 1.3916 with targets at the support of 1.3855.

Support and Resistance Levels for June 25 - 28, 2021

Resistance (3) 1.4066

Resistance (2) 1.4021

Resistance (1) 1.3969

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Support (1) 1.3906

Support (2) 1.3872

Support (3) 1.3831

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Trading tip for GBP/USD for June 25 - 28, 2021

Sell below 1.3916, or if pullback 1.3962 (bearish channel), with take profit at 1.3955 (3/8), stop loss above 1.3962 and 1.4000.