- March 24, 2021
- Posted by: cabana-admin
- Category: Market Insights
General overview: GBP/USD drops its price towards the lower low side in the market. GBP/USD drops to a fresh six-week low, closing on 1.3700 ahead of the UK inflation data. The broad US dollar strength, doubts over the UK’s economic recovery and downbeat jobs figures weigh on the spot. The headline CPI is expected to rise to 0.8% YoY in February vs. 0.7%. The pair breaches the 50 Ema level and travel toward the downside in the market. We can see lots of potential in the market. The pair makes it proper path toward the downside in the market. The persistent dollar’s strength maintained the GBP/USD pair below the 1.3800 threshold, currently trading a few pips above the mentioned daily low. The 4-hour chart shows that the pair has plunged below its moving averages, while the 20 SMA turned firmly bearish below the larger ones.
Technical overview: From the technical point of view we can say that market will lead toward the sell side in the market. The pair makes the supply pressure in the market. On the daily chart we can see that market shows the breakout level at 1.3786 and move towards the south direction in the market. In previous we can see that market lead towards the selling side in the market. Technical indicators reached oversold levels, partially losing their bearish strength afterwards. Nevertheless, the risk remains skewed to the downside, with further slides expected once below 1.3720, the next support level. The odds are in favour of the bears and following the bears in the market. The support will be the 1.3676 followed by 1.3636 and resistance will be 1.3756 followed by 1.3796.
Trade idea: Our traders will be move towards the sell side in the market at level 1.3714 target will be 1.3664 -1.3624 and stop loss will be 1.3769.