GBP/USD Near Supply Zone
4H Chart
Daily Chart
GBP/USD has managed to rise for the third trading day in a row including today’s Asian session, while the daily technical indicators are moving higher gradually. This supports the idea of a short-term retracement to the upside before the downtrend resumes later. In the meantime, GBP/USD is nearing a new selling zone which stands at 1.3950 and represents its 100-day MA followed by the psychological resistance at 1.40. This is the area where we will be interested in shorting GBP/USD not only on the short-term but on the medium-term as well, despite the fact that GBP/USD managed to hold above its uptrend line on the daily chart. We believe that this is a short-term play before the downside pressure resumes especially with the continuous estimates of a sooner tapering by the Federal Reserve.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 1.3739 | 1.3789 | 1.3817 | 1.3839 | 1.3867 | 1.3889 | 1.3939 |