GBP/USD: multidirectional trend 10 March 2021, 08:55

GBP/USD: multidirectional trend

10 March 2021, 08:55

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.3930
Take Profit	1.4050, 1.4100
Stop Loss	1.3850
Key Levels	1.3650, 1.3700, 1.3760, 1.3800, 1.3924, 1.4000, 1.4050, 1.4100

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3795
Take Profit	1.3650
Stop Loss	1.3870
Key Levels	1.3650, 1.3700, 1.3760, 1.3800, 1.3924, 1.4000, 1.4050, 1.4100

Current trend

GBP declines against USD in trading this morning after an attempt at corrective gains the day before, which was triggered by a decline in US Treasury yields in response to the actions of the US Treasury. Additional support for GBP was provided yesterday by strong data on the dynamics of retail sales in the UK from the British Retail Consortium. In February, the indicator grew by 9.5% YoY after an increase of 7.1% YoY in the previous month. Forecasts suggested an increase of 7% YoY only.

A good backdrop for GBP is also provided by the upbeat news on the coronavirus. The UK continues to increase the volume of vaccinations of the population, and the latest data indicate that the drugs used are effective against the British, African and Brazilian strains of the virus.

Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range expands from below, making way for new local lows for the "bears". The MACD indicator, despite the slowdown in its dynamics, maintains a fairly strong downtrend and a sell signal (the histogram is below the signal line). Stochastic, which received an upward momentum last week, is recovering, signaling in favor of the development of corrective growth in the ultra-short term.

The development of a full-fledged uptrend is possible in the short and/or ultra-short term.

Resistance levels: 1.3924, 1.4000, 1.4050, 1.4100.

Support levels: 1.3800, 1.3760, 1.3700, 1.3650.

Trading tips

To open long positions, one can rely on the breakout of 1.3924. Take-profit – 1.4050–1.4100. Stop-loss – 1.3850. Implementation time: 2-3 days.

The return of "bearish" trend with the breakdown of 1.3800 may become a signal for new sales with the target at 1.3650. Stop-loss – 1.3870.