The GBP / USD pair fell back from a weekly high at 1.3749. The line of 1/8 murray is located at this level that indicates a trend reversal. The bullish momentum could not bring it to touch the 200 EMA, which means that there may be a further technical rebound if the British pound consolidates above 0/8 of murray (1.3671) and above the SAM of 21.

The USDX dollar index is strengthening after having found strong support at the 6/8 murray line around 92.96. On several occasions, it has tried to break without success, suggesting that the uptrend could continue until the pair reaches the resistance of 93.75 or the level of 8/8 of murray. If this happens, the British pound could come under pressure and could fall back to the low of 1.3610 extremely oversold level.

The key support is located at 1.3671. As long as GBP / USD remains above this level, we expect that there will be a recovery of the pair and it could go up to the resistance of 1.3732, so it could reach the EMA of 200 located at 1,3789.

The eagle indicator has broken the downtrend line that was putting pressure on it. Now it is located above this, showing a bullish signal, which GBP can take advantage of. It could be a good signal if you want to buy, but always trade above 1.3671

According to the chart, since September 14, the British pound is trading below a bearish channel which was broken on September 23 at 1.3650. It means that the setback we see at this time will be a technical correction, preceding a new bullish wave.

Therefore, our strategy is to buy above 0/8 of murray around 1.3671. Besides, if the pair bounces towards the bearish channel that was broken around 1.3640 it would be a good opportunity to buy. With adaily close below 1.3610, we should avoid buying.

Support and Resistance Levels for September 23 - 24, 2021

Resistance (3) 1.3771

Resistance (2) 1,3732

Resistance (1) 1.3690

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Support (1) 1.3663

Support (2) 1.3631

Support (3) 1.3610

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Trading tip for GBP/USD for September 24 - 27, 2021

Buy above 1.3671 (SMA 21 and 0/8) with take profit at 1.3732 and 1.3793 (EMA ), stop loss below 1.3635.

Buy if the pair rebounds at 1.3640 with take profit at 1.3732 and 1.3793 (EMA ), stop loss below 1.3610.