GBP/USD Declines to Level 1.3081but Regains Bullish Momentum

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 is in a downward correction as price fell to the low of 1.3018 but regains bullish momentum. The current downtrend has reached bearish exhaustion as the Pound fell to the oversold region. Meanwhile, on February 24 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Pound will fall to level 1.618 Fibonacci extension or 1.3061. From the price action, the Pound has retested level 1.618 Fibonacci extension and resumed upward.

Daily Chart Indicators Reading:
The Pound is at level 26 of the Relative Strength Index for period 14. GBP/USD has fallen to the oversold region of the market. The downtrend has reached bearish exhaustion. Buyers are likely to emerge to push prices upward. 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-hour chart, the Pound is in a downtrend. The pair fell to the low of 1.3101 and resumed consolidation above the current support. Meanwhile, on February 24 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the Pound will fall to level 1.618 Fibonacci extensions or 1.3053. The Pound has reversed above level 1.618 Fibonacci extensions.

4-hour Ch.art Indicators Reading
The Pound is above the 30% range of the daily stochastic. It indicates that the market is in a bullish momentum. The 21-day and 50-day SMAs are sloping southward indicating the downtrend.

General Outlook for GBP/USD
GBP/USD is in a downtrend as it fell to the low of 1.3081 but regains bullish momentum. The currency pair is likely to reach the previous highs of levels 1.3400 and 1.3500.

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