Stay 
Trading Conditions
Products
Tools
On March 23, the GBP/USD pair reached a high of 1.3297, a level that coincides with the 200 EMA which acted as strong resistance.
The British pound failed to break out the 200 EMA and consolidate above it, so it started a technical correction. Today in the American session, GBP/USD is trading below the 21 SMA located at 1.3199.
From a technical viewpoint, trend indicators on the daily chart still remain in bearish territory and warn about further losses for the pound.
According to the 4-hour chart, the British pound is still trading below the 200 EMA. The outlook also remains negative and GBP/USD is likely to resume its bearish move in the coming days.
Downside pressure below the area 21 SMA (1.3199) will reaffirm the negative outlook and make the GBP/USD pair vulnerable to falling near the level 1.3061(5/8 Murray).
The British pound is struggling to sustain an uptrend as investors are reacting to a dovish assessment of the BoE decision last week.
As long as GBP/USD trades below the level of 1.3285 (200 EMA), it will suggest that the recent recovery move from yearly lows is over. This, in turn, will set the stage for a resumption of the downtrend. The GBP/USD pair could accelerate its decline and challenge the key psychological level of 1.3000.
On the other hand, a sustained move above the level 1.3200 could help the recover GBP/USD and reach 1.3288 and even 5/8 Murray at 1.3305.
Our trading plan is to sell below the 21 SMA (1.3199) and below the 4/8 Murray at 1.3183 with targets at 1.3061 and 2/8 Murray at 1.2939. The eagle indicator supports our bearish strategy because it is in the overbought zone.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
