The GBP / USD pair is trading below the 21 SMA located at 1.3872. The bearish channel in 4-hours charts is putting pressure on the GBP / USD pair. We expect a technical rebound in the 2/8 murray zone.
The British currency is under pressure as the rapid spread of the Delta coronavirus strain is affecting consumer confidence. The GBP / USD pair is expected to find a relief, when the United Kingdom lifts the restrictions on July 19 as it was planned.
The US dollar is asserting strength two days before the publication of the NFP that is also weakening the GBP / USD pair. We believe that good support for the British pound will be the area of 1.3793, (2/8 of murray). There will be a good opportunity to buy.
According to the 4-hour chart, a pullback towards the top of the bearish channel will offer an opportunity to sell because the 21 SMA (1.3872) is located in that same area that acts as a zone of strong resistance.
If the price overcomes this top and consolidates above the SMA of 21, we will have a good opportunity to buy with targets at 1.40 psychological level and up to the EMA of 200 located at 1.4072.
Our recommendation is to wait for the 1.3872 level to sell or a technical bounce at 2/8 murray to buy. In case of a break above 1.39, there could be a trend reversal. The eagle indicator is showing a bullish signal.
Support and Resistance Levels for June 30, 2021
Resistance (3) 1.3939
Resistance (2) 1.3894
Resistance (1) 1.3870
----------------------------
Support (1) 1.3801
Support (2) 1.3774
Support (3) 1.3732
***********************************************************
Trading tip for GBP/USD for June 30, 2021
Sell if there is a pullback to 1.3872 (SMA 21) with take profit at 1.3840 and 1.3793 (2/8), stop loss above 1.3903.
Buy if there is a bounce off 1.3793 (2/8 of murray) with take profit at 1.3840 and 1.3916 (4/8), stop loss below 1.3765.
The material has been provided by InstaForex Company - www.instaforex.com