GBP/USD: confident upward trend 21 April 2021, 12:35

GBP/USD: confident upward trend

21 April 2021, 12:35

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.4008
Take Profit	1.4231
Stop Loss	1.3900
Key Levels	1.3677, 1.3875, 1.4008, 1.4231

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3875
Take Profit	1.3677
Stop Loss	1.3930
Key Levels	1.3677, 1.3875, 1.4008, 1.4231

Current trend

The GBP/USD pair is showing ambiguous dynamics, trading around the level of 1.3937.

GBP is growing steadily against other world currencies. After the lifting of several restrictive measures, the United Kingdom Department of Health does not register a significant deterioration in the epidemiological situation, which is a positive factor. Today’s macroeconomic statistics were neutral and in line with analysts' expectations. The consumer price index for March rose by 0.3%, while the annual rate slowed down slightly to 0.7% but remained within analysts' expectations. The purchasing price index rose to 1.3% for March from 0.9% for February.

The USD Index also shows an upward trend, breaking the key level of 91 points, and is now at 91.160. Thousands of people in major US cities took to the streets again after the court announced the decision in the case of George Floyd. Most Americans, according to polls, are satisfied with the decision and believe that this will avoid new mass unrest on the streets.

Support and resistance

On the global chart, the instrument returned to an uptrend, breaking the resistance line of the downtrend channel yesterday. Technical indicators are in a buy state: the range of EMA fluctuations on the Alligator indicator began to expand upward, and the AO oscillator histogram moved into the buy zone.

Resistance levels: 1.4008, 1.4231.

Support levels: 1.3875, 1.3677.

Trading tips

After growth or consolidation above the local resistance level of 1.4008, buy positions with the target at 1.4231 will be relevant. Stop loss – 1.3900. Implementation period: 7 days or more.

After decline or consolidation below the local support level of 1.3875, it is relevant to open sell positions with the target at 1.3677. Stop loss – 1.3930.