For Traders

Analytical Reviews

Technical analysis

14.05.202105:45 Forex Analysis & Reviews: Trading Signal for GBP/USD, for May 14 - 17, 2021: Buy above 1.4000/50

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The GBP/USD pair, before the opening of the European session, on the 1-hour chart is trading above the 21 SMA and above the psychological level of 1.40. In addition, we can see that it is located above the strong support of 6/8 of murray.

On the 1-hour chart, you can see the formation of a symmetrical triangle, a break above the upper edge, could be a signal for a bullish momentum of GBP/USD to the 1.4111 zone, in this zone the channel line downtrend converges.

From its highest level this week, GBP/USD has fallen back to the minimum in the 1.4015 area, this level represents a key and psychological level for traders, because below this there could be a fall to 1.37. As long as the price trades above that key point, we expect GBP/USD to strengthen.

On the contrary, as long as it remains above 1.4000, there on the 1-hour chart, the 200 EMA is located, which also offers dynamic support to the pair, therefore a rebound in this area of the moving average could give it a good upward momentum and a good opportunity to buy.

The technical reading of the eagle indicator shows that GBP/USD on the 1-hour chart has reached an oversold level, and there could be a bullish move in the next few hours.

The market sentiment index shows that there are 59.39% of traders who are selling the British pound, this is a sign that there could be a new upward momentum to the 1.41 area in the coming days.

Our recommendation is to buy if GBP/USD bounces in the 1.40 region, or breaks above 1.4050 with targets at 1.4111 for the next few hours. In case of a daily close below 1.40 we should avoid buying and close any bullish position.

Support and Resistance Levels for May 14 - 17, 2021

Resistance (3) 1.4111

Resistance (2) 1.4080

Resistance (1) 1.4062

----------------------------

Support (1) 1.4008

Support (2) 1.3988

Support (3) 1.3970

***********************************************************

Trading tip for GBP/USD for May 14 - 17, 2021

Buy if the price breaks 1.4050 (symmetrical triangle) with a Take Profit at 1.4111 and a Stop Loss below 1.4000

Buy if the price rebounds at 1.4000 (EMA 200) with a Take Profit at 1.4055 (SMA 21) and 1.4111 (7/8), and a Stop Loss below 1.3965.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.