GBP/USD: Technical Analysis and Trading Recommendations_06/18/2021

Despite a fairly strong corrective decline observed this week, GBP / USD maintains positive long-term dynamics, trading in the zone above the long-term support level of 1.3660 (ЕМА200 on the daily chart).

This correctional decline may continue up to support levels 1.3790 (ЕМА144 on the daily chart), 1.3660.

However, it should be noted that the technical indicators OsMA and Stochastic on the 1-hour and 4-hour charts turned onto long positions.

The breakdown of the resistance level 1.3970 (ЕМА200 on the 15-minute chart and the Fibonacci level 38.2% of the correction to the decline of the GBP / USD pair in the wave that began in July 2014 near the mark of 1.7200) may become a signal to close short positions in GBP / USD. In case of consolidation in this zone (above the level 1.3970) and further growth of GBP / USD, long positions should be resumed and increased.

Breakdown of resistance levels 1.4030 (EMA50 on the daily chart), 1.4161 (EMA200 on the 1-hour chart), 1.4069 (EMA200 on the 4-hour chart) will become a confirmation signal for purchases.

In an alternative scenario and after the breakdown of the support level 1.3660, GBP / USD may decline to the support levels 1.3300, 1.3210 (Fibonacci level 23.6%). The breakout of the support levels 1.3300 (ЕМА200 on the weekly chart), 1.3210 will increase the risks of a resumption of the global bearish trend in GBP / USD and may provoke a deeper decline towards the support levels 1.2250, 1.2085, 1.2000 (Fibonacci level 0%).

A signal for the implementation of an alternative scenario may be a breakdown of the local support level 1.3855, passing through today's lows.

Support levels: 1.3855, 1.3790, 1.3660, 1.3300, 1.3210

Resistance levels: 1.3970, 1.4030, 1.4061, 1.4069, 1.42001.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830

Trading recommendations

Sell Stop 1.3850. Stop-Loss 1.3950. Take-Profit 1.3790, 1.3660, 1.3300, 1.3210

Buy Stop 1.3950. Stop-Loss 1.3850. Take-Profit 1.3970, 1.4030, 1.4061, 1.4069, 1.42001.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830