For Traders

Analytical Reviews

Technical analysis

18.05.202104:57 Forex Analysis & Reviews: Trading Signal for GBP/USD for May 18 - 19, 2021: Sell Below 1.4160

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.

Before the opening of the European session on 4H charts, the GBP/USD pair is trading above the 21 SMA and below the 8/8 of Murray. The pound sterling is moving upwards and rising for the second day in a row. It recently hit a new high at 1.4160, driven by a weaker US dollar.

The pound sterling could break the resistance level of 1.4061, and could find strong resistance in the 1.4190 area, a little higher is 1.4222 (+2/8 of Murray).

According to the fundamental analysis, this week there will be a lot of volatility in the GBP/USD pair, as the labor market data will be released in a few hours, tomorrow the inflation data and April retail sales on Friday. These reports are undoubtedly going to have a major impact on the pound sterling.

The dynamic support is located in the area of the SMA of 21 (1.4078), this level is key as it could offer a bullish rebound for the GBP/USD pair. A break to the downside would expose the next dynamic support located at the 200 EMA around 1.3905.

The market sentiment report shows that there are 58.56% of operators are selling the GBP/USD pair compared to this figure with last week. We have seen a decrease of 3.61%, this is a sign of exhaustion and there could be a technical correction before a new impulse.

The technical reading of the eagle indicator shows that we are facing an overbought zone, it is imminent that there may be a bearish movement in the coming days.

On the chart, you can see that a triple top pattern could be forming. So, if the GBP/USD pair consolidates below 1.4160, there could be a downward movement in the short term.

Support and Resistance Levels for May 18 - 19, 2021

Resistance (3) 1.4225

Resistance (2) 1.4190

Resistance (1) 1.4175

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

Support (1) 1.4113

Support (2) 1.4085

Support (3) 1.4046

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

Trading tip for GBP/USD for May 18 - 19, 2021

Sell bellow 1.4160 (8/8 of murray), with take profit at 1.4078 (SMA 21), stop loss above 1.4199.

Sell if pullback 1.4190 (8/8 of murray), with take profit at 1.4078 (SMA 21), stop loss above 1.4232.

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.