Trading Signal for GBP/USD for Juanary 20 – 21, 2021: Strong Resistance at 1.3705
The vaccination process in the United Kingdom gave the British currency an upward momentum in recent days.
At the opening of the American session it is trading at 1.3671, after having made a new attempt to break the 1.37 area, in 4-hour charts we observe that it has left a pin bar candle, it is likely that below this level it is expected that there is strong bearish pressure.
This would be the fourth time that the GBP / USD pair tries to consolidate above the 1.37 level in 4-hour charts, we have seen the breaks and then quickly made a correction to the support zone.
The eagle indicator in 4-hour charts is giving a slight bearish signal, we must take into account that the 1.3705 level for now is offering resistance, therefore a good selling opportunity could be considered below this level.
On the other hand, a consolidation above the 1.3705 area, we must be very careful, because the upward force could increase, traders could look for a quote in the area of 1.3790 and 1.3845.
The market sentiment report shows 64.27% of traders are selling the GBP / USD pair, in these two days we have seen an increase in sales, which could be a sign that the GBP / USD pair could reach 1.3850 in the short term. For them we should expect a daily close above 1.37.
Support And Resistance Levels For January 20 – 21, 2021
Resistance (1) 1.3711
Resistance (2) 1.3844
Resistance (3) 1.3972
Support (1) 1.3610
Support (2) 1.3580
Support (3) 1.3543
Trading tip for GBP/USD for January 20-21, 2021
Sell below 1.3671 (8/8 murray) with take profit at 1.3610 and 1.3545(7/8), stop loss above 1.3711.
Sell if pullback at 1.3705 (strong reistance) with take profit at 1.3620 and 1.3545 (7/8 of murray), stop loss above 1.3745.
The material has been provided by InstaForex Company – www.instaforex.com