The GBP / USD pair, this morning of the American session, is trading near the 21 SMA in 4-hour charts, around 1.3703 after having made a new high at 1.3755, we are now observing a correction that is approaching towards the SMA of 21, and lower 8/8 of Murray.
On the 4-hour chart of the GBP / USD pair, we note that it maintains an uptrend, however, the eagle indicator is showing a bearish divergence, if the price of the pair breaks the 21 SMA on 4-hour charts and trades for below 1.3690, a fall to the 1.3640 channel of the uptrend could occur in the short term.
On the other hand, a pullback to the 1.3750 resistance zone will give the opportunity to sell again, because it has been overbought, and the eagle indicator is giving a bearish signal.
A definitive break of the uptrend channel on 4-hour charts could accelerate the decline of the GBP / USD pair to the support levels of the 200 EMA and the Murray 7/8 around 1.3549.
Our recommendation for today, January 27, is to sell below 1.3750 and sell below 1.3695, both are inflection levels that could push the pair down.
The market sentiment for today January 27 shows a percentage of 68% operators who are selling the pair, this is a sign that in the short term the pair could continue with the upward force.
Support And Resistance Levels For January 27 - 28, 2021
Resistance (1) 1.3770
Resistance (2) 1.3829
Resistance (3) 1.3844
Support (1) 1.3647
Support (2) 1.3560
Support (3) 1.3511
Trading tip for GBP/USD for January 27 - 28, 2021
Sell below 1.3690 (SMA 21) with take profit at 1.3645 and 1.3549 (7/8), stop loss above 1.3725.
Sell if pullback at 1.3750 (strong resistance) with take profit at 1.3690 and 1.3645 (Trend line), stop loss above 1.3785.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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