GBP/USD Battles Resistance at Level 1.4000, May Resume Uptrend

GBP/USD Battles Resistance at Level 1.4000, May Resume Uptrend

Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.3400, 1.3200, 1.3000

GBP/USD Price Long-term Trend: Bullish
GBP/USD is rising to retest the resistance at level 1.4000. The resistance has remained unbroken since February 25. Meanwhile, on April 20, the pair was resisted but the retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the Pound is likely to rise to level 2.0 Fibonacci extension or level 1.4334. From the price action, the Pound has risen to level 1.3906.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The 21-day and 50-SMAs are sloping upward indicating the uptrend. The Pound is at level 53 of the Relative Strength period 14. It indicates that the pair is in the uptrend zone and capable of rising.

GBP/USD Medium-term Trend: Ranging
On the 4-hour chart, the pair has been in a sideways move below level 1.4000. Since April 20, the bulls are yet to break the resistance level. On April 20 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair is likely to rise to level 2.0 Fibonacci extension or level 1.4295.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The GBP/USD pair is currently above the 40% range of the daily stochastic. The pound is in a bullish momentum. The 21-day and 50-day SMAs are sloping upward indicating the upward move.

General Outlook for GBP/USD
The GBP/USD is trading below the resistance at level 1.4000. The upward move has been impeded because of the overhead resistance at level 1.4000. Presently, the market fluctuates between levels 1.3800 and 1.4000.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.