GBP/USD forecast for February 18, 2021
Looking at the chart on the weekly time frame, we see that the British pound records new highs against the US dollar. The GBP/USD pair has climbed to the current 1.39200, and soon we can expect psychological level testing at 1.40000 from April 2018. All moving averages and lower indicators show us a very strong bullish trend, and we need to pay attention to the upcoming possible resistance zones.
In addition to this psychological, our target is the previous high at 1.43750, and for now, we are all closer to it.
Following Fibonacci retracement levels, we see a break above the 38.2% level and the GBP/USD pair progressing towards the 50.0% level at 1.43000. The bearish option is in the form of a potential pullback, but there are no signs of such a thing for now.
On the daily time frame, a strong bullish impulse without a weakening of the trend is supported from the bottom by moving averages; for now, the MA20 and EMA20 give excellent results and support the pair to conquer higher heights the chart. We are very close to investors’ psychological level at 1.40000, and we can expect possible resistance.
Still, it also depends on the dollar’s strength, which is on the negative side and under great pressure with the arrival of a new administration and the introduction of new economic measures and financial assistance packages.
And on the four-hour time frame, the picture is similar, the pound dominating against the US dollar climbing the chart to the current 1.39200. The previous smaller high was made at 1,395,500, and based on this situation on the chart, we can expect a break above if the global market situation remains the same, still putting pressure on the dollar.
Moving averages are also on this time frame on the bull’s side, but we can also count on a smaller pullback by consolidating to the next stronger bullish momentum. If we see a pullback below, we can look at the support in zone 1.37500-1.38000, where the pair will encounter the MA200 and EMA200 better technical support.
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