GBP/USD Declines as It Faces Rejection at Level 1.3840

Azeez Mustapha
17 August 2021 | Updated: 17 August 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: Bearish
GBP/USD pair is still falling. The pound has been falling from level 1.4000. Further downsides are likely as the pair faces rejection from level 1.3840. Meanwhile, on June 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Pound is likely to fall to level 1.618 Fibonacci extension or level 1.3517.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The Pound is at level 46 of the Relative Strength period 14. It implies that the pair is in the downtrend zone below the centerline 50. The pair is capable of falling on the downside. The 21-day SMA and the 50-day SMA are sloping southward indicating the downtrend.

GBP/USD Medium-term Trend: Bearish
On the 1-hour chart, the pair is in a downtrend. The selling pressure has been accelerated as price breaks below the moving averages. Meanwhile, on the August 16 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the Pound is likely to fall to level 2.618 Fibonacci extensions or level 1.3788.

GBP/USD – 1 Hour Chart

4-hour Chart Indicators Reading
The Pound is below the 20% range of the daily stochastic. The market has reached the oversold region. Selling pressure is likely to be exhausted. The 21-day and 50-day SMAs are sloping downward indicating the downward move.

General Outlook for GBP/USD
The pound is still falling. Presently, the pair has fallen to the oversold region of the market. The market has fallen to level 1.3819 with the appearance of bullish candlesticks. The pound is expected to reach the low of level 1.3788.


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Azeez Mustapha

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.