Technical analysis of GBP/USD for February 22, 2021
The GBP/USD pair hit 1.4035 last weekly which represents a top price on the H1 chart. The GBP/USD pair bullish potential is intact as the pair trades near an almost 3-year high.
The GBP/USD’s pair up trend continued last week and hit as high as 1.4035 initial bias remains on the upside this week.
On the downside, break of 1.3936 minor support (61.8% of Fibonacci retracement levels) will turn intraday bias neutral, and bring consolidations, before staging another rally.
Further rally would be seen to 1.4035 resistance and above. Additionally, the price is in a bullish channel now. Amid the previous events, the pair is still in an uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new resistance of 1.4088.
About coronavirus 2019 (COVID-19), noted that the UK government will outline the exit of the current lockdown this week.
The GBP/USD pair is going to continue to rise from the level of 1.3936 or 1.3874 in the long term. It should be noted that the support is established at the level of 1.3936 which represents the 61.8% Fibonacci retracement level on the H1 chart.
The price is likely to form a double bottom in the same time frame. Accordingly, the GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.3936.
So, buy above the level of 1.3936 with the first target at 1.4088 in order to test the daily resistance 1 and further to 1.4132. Also, it might be noticed that the level of 1.4132 is a good place to take profit because it will form a new double top.
On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.3836, a further decline to 1.3680 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company – www.instaforex.com