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07.05.202113:30 Forex Analysis & Reviews: Technical Analysis of GBP/USD for May 07, 2021

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Overview :

After breaking the support at 1.3937. The GBP/USD pair has set strong resistances at the levels of 1.3937 because the support has become a resistance.
So, the price has already formed the strong resistance at the level of 1.3937 and the pair probably will try to approach from it in order to test it again.
However, if the pair fails to pass through the level of 1.3937, the market will indicate a bearish opportunity below the new strong resistance level of 1.3937 (the level of 1.3937 coincides with the ratio of 78% Fibonacci).
Moreover, the RSI is becoming to signal a downward trend, as the trend is still showing strong above the moving average (100) and (50).
Thus, the market is indicating a bearish opportunity below the 1.3937 level so it will be a good sign to sell at 1.3937 with the first target of 1.3867.
It will also call for a downtrend in order to continue towards 1.3841. The daily strong support is seen at 1.3800 (double bottom).
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.3975.
On the other hand, it is also worth noting that the price at 1.3800 will possibly form a strong support.
Accordingly, saturation around 1.3800 to rebound the pair is likely to occur. Furthermore, it is possible that the market is going to start showing the signs of bullish market.
Hence, it will be a good sign to buy above 1.3800 with the first target of 1.3900 and continue towards 1.3937 and 1.3975. In the long term we guess a range between the levels of 1.3800 and 1.3975.

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