GBP/USD: GBP wins back losses 26 March 2021, 09:32

GBP/USD: GBP wins back losses

26 March 2021, 09:32

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.3805
Take Profit	1.3924
Stop Loss	1.3740
Key Levels	1.3600, 1.3650, 1.3700, 1.3760, 1.3800, 1.3857, 1.3924

Alternative scenario
Recommendation	SELL
Entry Point	1.3755
Take Profit	1.3650
Stop Loss	1.3810
Key Levels	1.3600, 1.3650, 1.3700, 1.3760, 1.3800, 1.3857, 1.3924

Current trend

GBP is showing corrective gains against USD in today's morning session, developing the "bullish" signal formed the day before.

Technical factors are the reason for the strengthening of the instrument, while a further decrease in the yield of American bonds weakens USD.

In turn, yesterday USD received moderate support from macroeconomic publications in the USA. The revised data reflected the growth of the American economy in Q4 2020 by 4.3% YoY, which turned out to be 0.2% better than the forecast. The number of initial jobless claims for the week ending March 19 fell sharply from 781K to 684K, which also outstripped positive market expectations of a decline to 730K. Continuous jobless claims for the first time in a long time fell below 4M and consolidated at 3.87M after 4.134M in the previous period.

Today, the data on the retail sales in the UK for February is expected to be published.

Support and resistance

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. MACD is trying to reverse upwards but preserves its previous sell signal (located below the signal line). Stochastic is showing similar dynamics, reversing upwards close to its lows and indicating the oversold GBP in the ultra-short term.

Resistance levels: 1.3760, 1.3800, 1.3857, 1.3924.

Support levels: 1.3700, 1.3650, 1.3600.

Trading tips

To open long positions, one can rely on the breakout of 1.3800. Take-profit – 1.3924. Stop-loss – 1.3740. Implementation time: 2-3 days.

A rebound from 1.3800 as from resistance, followed by a breakdown of 1.3760 may become a signal for new sales with the target at 1.3650. Stop-loss – 1.3810.