GBP/USD Continues a Bearish Run as It May Extend to the Low of 1.1708

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

GBP/USD Price Long-term Trend: Bearish
GBP/USD has continued its downward move as it may extend to the low of 1.1708. On July 11, the currency pair declined to the low of 1.17597 and pulled back. Meanwhile, on May 9 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the Pound will fall at level 1.272 Fibonacci extension or level 1.17087.

Weekly Chart Indicators Reading:
The Pound is at level 29 of the Relative Strength Index for period 14. It indicates that the pair is in the oversold region of the market. Buyers are likely to be attracted to the oversold region of the market. The price bars are below the 21-day line SMA and the 50-day line SMA indicating a further decline. The 21-day line and 50-day line moving averages are sloping downward indicating the downtrend.

GBP/USD Medium-term Trend: Bearish
On the 4 charts, GBP/USD is in a downtrend. The Pound made an upward correction which was repelled at the 1.2050 resistance level. The pair is in a downward move. The selling pressure will be accelerated if price breaks below the moving average lines.

4-Hour Chart Indicators Reading
GBP/USD is below the 80% range of the daily stochastic. It was trading in the overbought region of the market. Sellers will emerge in the oversold region to push prices down. The 21-day and 50-day SMAs are sloping southward indicating a downtrend.

General Outlook for GBP/USD
The Pound is still on a downward move as it may extend to the low of 1.1708. According to the Fibonacci tool analysis, the Pound will fall at level 1.272 Fibonacci extension or level 1.17087. Nonetheless, the pair has reached the low of level 1.1964 at the time of writing.


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