GBP/USD: the global trend remains upward 01 April 2021, 11:51

GBP/USD: the global trend remains upward

01 April 2021, 11:51

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.3808
Take Profit	1.3960
Stop Loss	1.3740
Key Levels	1.3580, 1.3717, 1.3808, 1.3960

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3717
Take Profit	1.3580
Stop Loss	1.3780
Key Levels	1.3580, 1.3717, 1.3808, 1.3960

Current trend

The GBP/USD pair is declining, trading around 1.3757.

For the second day, GBP has been trying to grow amid hopes for an early easing of quarantine measures. The first stage of easing is scheduled for April 12, when shops and public places in the open air will be opened, and, possibly, spectators will be allowed in the stands of football stadiums in a minimum number. The economy is recovering at a faster pace, and the GDP level is growing by 1.3% instead of the expected growth of 1.0%. The annual rate also reduced the rate of decline to –7.3% instead of –7.8% expected.

USD is at the highs reached at the beginning of the week. Yesterday, US President Joe Biden, during a speech in Pittsburgh, presented a plan to modernize infrastructure and develop the labor market with a total volume of $2T. According to the head of state, the plan provides for the creation of millions of jobs with the appropriate infrastructure that will help the United States ultimately win in the competition with China and contribute to the growth of the American economy.

Support and resistance

Locally, the instrument moves within a downward correction, forming an intermediate Triangle pattern. Technical indicators are in a state of uncertainty. Fast EMAs on the Alligator indicator crossed with the signal line, and the AO oscillator histogram moved into the positive zone.

Resistance levels: 1.3808, 1.3960.

Support levels: 1.3717, 1.3580.

Trading tips

After growth or consolidation above the local maximum of 1.3808, buy positions with the target at 1.3960 are relevant. Stop loss is 1.3740. Implementation period: 7 days or more.

After decline or consolidation below the local minimum at 1.3717, sell positions with the target at 1.3580 are relevant. Stop loss is 1.3780.