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 a bullish momentum but may resume uptrend after retracement. The currency price broke above the 50-day SMA but it is below the 21-day SMA. If the currency price has broken above the 50-day SMA and the 21-day SMA, then the market will continue to rise to the upside. In the meantime, the Pound is between the moving averages which means the pair is likely to fluctuate in between the moving averages.
Daily Chart Indicators Reading:
Because of the recent upward move, the Pound has risen to level 48 of the Relative Strength Index Index for period 14. The Pound is not out of the downtrend zone but below the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways move.
GBP/USD Medium-term Trend: Bearish
On the 1-hour chart, the Pound is in an uptrend as price breaks above the moving averages. The market has risen to an overbought region. Meanwhile, on January 31 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that the Pound will rise to level 2.0 Fibonacci extension or 1.3513. From the price action, the Pound has retested level 2.0 Fibonacci extension and it is reversing.
4-hour Chart Indicators Reading
The Pound is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region. Because of that, the Pound is falling to the downside. The market has resumed bearish momentum. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.
.General Outlook for GBP/USD
GBP/USD has recovered from the downtrend but may resume uptrend after retracement. The current uptrend has reached the overbought region of the market. The Pound will resume upward move in between the moving averages.
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