GBP/USD Declines above Level 1.3941, May Resume an Uptrend

26 October 2021 | Updated: 26 October 2021

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 in an upward move as price breaks above the moving averages. The uptrend is facing resistance at level 1.3850. The pound is making a fresh uptrend after retracing to level 1.3736. Meanwhile, on October 19 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that the pair will rise to level 1.618 Fibonacci extension or level 1.3982.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The Pound is at level 56 of the Relative Strength period 14. It indicates that the market is in the uptrend zone and above the centerline 50. The currency pair is attempting to resume an upward move.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is making a continuous upward movement. However, the uptrend is stalled at level 1.3850. The market has retraced above the 50-day SMA support. Meanwhile, on October 19 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 1.3959.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is above the 25% range of the daily stochastic. The market is in a bullish momentum. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. The price bars are above the 50-day SMA. The upward movement will resume as price breaks above the moving averages.

General Outlook for GBP/USD
The currency pair is facing resistance at level 1.3850. The pound is likely to resume upward as it is above the moving averages. The Fibonacci has indicated a further upward movement of the pair. It indicates that the pair will further rise to level 1.3982.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.