1. Strategy Forex

Forecast for the pair GBP / USD (pound / dollar) for today May 7, 2021


Paying attention to 4 hours chart you can see that:

  • strong support for the British pound (GBP) formed at 1.3885,
  • from the beginning of the current day, bullish sentiments dominate in this currency pair,
  • at the same time, the growth of quotations began to slow down when approaching the strong resistance level of 1.3914 …

GBP / USD.  Strong resistance level 1.3914 in the spotlight for forex traders ...

GBP / USD

Now let’s look at the indicators:

The currency has consolidated above the moving averages with periods of 89, 55, 34 and 144, which are now a range of support levels 1.3899, 1.3895, 1.3889 and 1.3851.

The MACD histogram is still in the positive area, but has merged with its signal line and is not giving clear signals at the moment.

Stochastic Oscillator is in the neutral zone and is giving a buy signal for the British pound (GBP) as the% K line rises above the% D line.

Since trusting only one clear signal is extremely risky, and also due to the fact that the growth of quotations has slowed down, as confirmation the fact that bullish sentiment may increase in the forex market in this currency pair, need to wait breakdown of the strong resistance level 1.3914, which can open the way to the levels 1.39385, 1.3964 and 1.40025.

Otherwise, the rate of the GBP / USD currency pair will move within the 1.3885 – 1.3914 price range.

An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the strong support level 1.3885, after which the quotes may decline to levels 1.38495, 1.3802 and 1.3755.

We remind forex traders that today at 15:30 Moscow time. will be published data on the US labor market, which may have a significant impact on the further course of trading.

Resistance levels: 1.3914, 1.39385, 1.39525, 1.3964, 1.3976, 1.3981, 1.40025, 1.40085

Current price: 1.3907

Support levels: 1.3899 / 95, 1.3889, 1.3885, 1.3851 / 495, 1.3833, 1.3802, 1.3786, 1.3755, 1.3715

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