GBP / USD Review of April 28, 2021
On Tuesday and Wednesday, the GBP / USD bears won back some of their losses after the upward impulse at the beginning of the week.
Investors are fixing open positions ahead of the release of the results of the FOMC meeting, which may indicate the prospects for the regulator’s monetary policy in the near future. Also, the markets will closely follow Jerome Powell’s press conference, catching hints of a possible adjustment in the volumes of the asset purchase program.
In addition, the pressure on the pair came from the report on retail sales from the UK Confederation of Industrialists released today. In March, the indicator fell by 1.3%.
Technical Analysis of GBP / USD
According to the Daily indicator Bollinger Bands are still in moderate growth, but the price range of the lines is rapidly narrowing.
The MACD indicator is still in a positive range, but is rapidly moving down to the zero line, forming a weak sell signal.
Stochastic was decreasing, but about in the middle of the working area it turned upward.
Confident breakdown of support at 1.3857 will be a signal to enter short positions with a take profit of 1.3750. Stop loss is set at 1.3900.
In case of a rebound from 1.3857, you should wait for a breakdown and consolidation above the key resistance 1.3900 and only after that open purchases with a take profit in the 1.4000 area. Placement of stop loss at 1.3857.