In the early American session, the GBP / USD pair is trading, above the SMA of 21 and above the EMA of 200 according to the 1-hour chart. It is now under downward pressure, given that from its high in 1.4007, a bearish channel is drawn, which converges with the area of 1.3905 / 15.

The market now seems convinced with the view that any increase in inflation in the United States is likely to be temporary and has been lowering its expectations of a tightening of the Fed's monetary policy earlier than anticipated. Which has given the GBP / USD pair a break and go to challenge the psychological level of 1.40.

Despite the factors that play against the US dollar, the rally in GBP / USD has lacked strong bullish conviction and has stopped below Murray's 4/8 level of 1.3916.

As the pair is now under bearish pressure, as long as it trades below 1.3916, it will be a good opportunity to sell with targets at 1.3855. If this level is broken, the bearish force will continue to the 2/8 Murray zone around 1.3793.

Our recommendation is to sell below 1.3916, and below the bearish channel. Besides, you can buy if there is a technical bounce at the support of the 200 EMA around 1.3850.

Support And Resistance Levels For April 23 - 26, 2021

Resistance (1) 1.3897

Resistance (2) 1.3914

Resistance (3) 1.3956

Support (1) 1.3820

Support (2) 1.3786

Support (3) 1.3742

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Trading tip for GBP/USD for April 23 - 26, 2021

Sell below 1.3902 (Strong resistance), with take profit at 1.3850, stop loss above 1.3937.

Buy if rebound 1.3850 (EMA 200 and 3/8), with take profit at 1.3885 and 1.3905, stop loss below 1.3815.