GBP/USD Deepens in the Oversold Region as Sellers Threaten to Short

Updated:

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 below the moving averages which are capable of a further downward move. Today, the Pound is rising upward and if it faces rejection at the 21-day moving average line, the selling presume will resume. However, the trend may change if price breaks above the moving averages and the bullish momentum is sustained. Meanwhile, on November 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement. The retracement indicates that GBP/USD is likely to fall to level 1.272 Fibonacci extension or level 1.3225.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
GBP/USD is at level 37 of the Relative Strength Index period 14. The currency pair is in the downtrend zone and below the centerline 50. The price bars are below the 21-day line and 50-day line SMAs indicating a further downward move.

GBP/USD Medium-term Trend: Bullish
On the weekly chart, the pair is in a downward move. The pair faces rejection at level 1.3800 to resume selling pressure. Meanwhile, on September 27 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that GBP/USD is likely to fall to level 1.618 Fibonacci extension or level 1.2884.

GBP/USD – Weekly Chart

4-hour Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. The Pound is in the oversold region. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for GBP/USD
The Pound has declined to the oversold region of the market. The current downtrend is likely to subside as the market reaches the oversold region. In the meantime, the pair is likely to fall on the downside.


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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.