GBP/USD Reaches Overbought Region as It Struggles below Level 1.1203

Technical indicators:
Major Resistance Levels – 1.2800, 1.2900, 1.3000
Major Support Levels – 1.1900, 1.1800, 1.1700

GBP/USD Long-Term Analysis: Bearish
GBP/USD is in an upward correction as it struggles below level 1.1203 . The upward correction is approaching the 21-day line SMA. The 21-day line SMA has been acting as resistance to the price bars. A break above the moving average lines will signal the resumption of the uptrend. However, if the pair turns down from the moving average lines, the selling pressure will resume.

GBPUSD Indicator Analysis
GBPUSD is at level 42 of the Relative Strength Index for period 14. It indicates that the Pound has risen to the previous highs, though it is confined in the bearish trend zone. It is capable of further decline. The Pound can further decline as the price bars are below the moving average lines. The pair is above the 80% range of the daily stochastic. It is in the overbought region of the market. We expect a possible decline of the currency pair.


What Is the Next Direction for GBP/USD?
On the 4-hour chart, the Pound has broken above the moving average lines as it struggles below level 1.1203. The currency pair is expected to rise as the GBP/USD is above the moving average lines. On September 30 uptrend a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement implies that the Pound will rise to level 1.618 Fibonacci extension or level 1.1470.

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