The GBP / USD pair continued with the rally that began on Monday and reached 1.3698, forming a double-top pattern, for now it is below this level, this is a psychological level, which is now a key resistance. The break of it would enable a bullish extension to 1.3793. So far, attempts to fail have been followed by setbacks.
This 1.3698 level is a key resistance if the GBP / USD breaks this zone, we should expect a bullish momentum to the +1/8 of Murray located at 1.3793.
On the other hand, a consolidation below this level could have a decline in the pair to the support zone of 1.3585, which is where the downtrend line is located, which the pair has broken yesterday, that level will be a good bounce point to buy back the GBP / USD pair.
A definitive break below the 21 SMA on the 4-hour charts, around 1.3570, will open a correction drop in the GBP / USD pair, to the support of the 200 EMA, located at 1.3427.
The eagle indicator is showing a sign of bullish exhaustion and a strong divergence, if the pair consolidates below 1.37, a short-term decline could occur.
Support And Resistance Levels For January 13-14, 2021
Resistance (1) 1.3717
Resistance (2) 1.3769
Resistance (3) 1.3844
Support (1) 1.3598
Support (2) 1.3551
Support (3) 1.3493
Trading tip for GBP/USD for January 13-14, 2021
Buy if rebound 1.3585 (strong support and SMA 21), with take profit 1.3645 and 1.3690, stop loss below 1.3550.
Sell if breaks 1.3570 (SMA 21) with take profit at 1.3427 ( EMA 200), stop loss above 1.3605.
Buy above 1.3700, with take profit at 1.3755 and 1.3793, stop loss below 1.3670.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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