According to a 1-hour chart, GBP/USD is trading within an uptrend channel above the 21 SMA and the 200 EMA located at 1.3690. There is immediate resistance at 1.3732. So we believe there could be a correction up to the bullish channel support around 1.3685.
The British pound remains above the 0/8 murray line located at 1.3671. This level has become strong support for the pair. Therefore, a technical bounce at this level could be a good opportunity to buy.
As long as the GBP / USD pair remains above the 200 EMA located at 1.3690, the bullish outlook remains preferable. Hence, a bounce off this level suggests a good opportunity to buy with targets at 1.3730 and 1.3793 level of 2/8 Murray.
Investors are cautious ahead of Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium. Without a doubt, in a few hours there could be strong volatility for the GBP / USD pair.
It is better to wait for the market to digest the data and take a course, before opening any trading positions. It would not be wise to risk our capital because the currency market will always give us good trading opportunities.
Therefore, the key point is to buy the GBP / USD pair, if it makes a technical bounce off 1.3685 or if it falls to the 0/8 murray support located at 1.3671 with targets at 1.3730 and 1.3793. The eagle indicator that measures the strength of the market is showing a bullish signal.
Support and Resistance Levels for August 27 - 30, 2021
Resistance (3) 1.3824
Resistance (2) 1.3795
Resistance (1) 1.3746
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Support (1) 1.3700
Support (2) 1.3668
Support (3) 1.3639
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Trading tip for GBP/USD for August 27 - 30, 2021
Buy above EMA 200 at 1.3705 with take profit at 1.3730 and 1.3793 (2/8), stop loss below 1.3655.
Buy if the pair rebounds at 1.3685 with take profit at 1.3730 and 1.3793 (2/8), stop loss below 1.3635.
The material has been provided by InstaForex Company - www.instaforex.com