The GBP / USD pair rose more than a hundred pips in a few minutes after the Bank of England (BoE) decision. The data that made the British pound rise strongly was the absence of an indication that there could be negative rates in the short term.
At the opening of the Asian session it is trading, above the SMA of 21 and above the EMA of 200, which is giving a strong bullish signal, we also noticed that the pair broke its downtrend channel in 4-hour charts.
In the 4-hour chart we can see the formation of a bullish pennant, if the GBP / USD pair consolidates and trades above 1.3655, the bullish force will remain with targets at 1.3743 and 1.3793 area of the +1/8 of murray .
The eagle indicator is showing a bullish signal, so we can buy only if the GBP / USD pair consolidates above 1.3655.
On the contrary, a break below 1.3650, in this area is located the SMA of 21, the British pound could weaken to the EMA of 200 around 1.3603.
Our recommendation is to buy above 1.3655, and if the pair breaks this level, you can sell below 1.3640, both targets are indicated on the chart.
Support And Resistance Levels For February 05 - 08, 2021
Resistance (1) 1.3719
Resistance (2) 1.3774
Resistance (3) 1.3817
Support (1) 1.3615
Support (2) 1.3587
Support (3) 1.3537
Trading tip for GBP/USD for February 05 - 08, 2021
Buy if rebound around 1.3655 (SMA 21) with take profit at 1.3743 and 1.3793 (+1/8 of murray), stop loss below 1.3615.
Sell if breaks at 1.3640 (SMA 21) with take profit at 1.3601 (EMA 200) and 1.3549 (7/8), stop loss above 1.3685.
The material has been provided by InstaForex Company - www.instaforex.com