GBP/USD Faces Rejection at Level 1.3700 Resistance Zone, Resume Selling Pressure

12 October 2021 | Updated: 12 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: Bearish
GBP/USD has been in a downward move since June 11. The Pound has been falling from the high of level 1.4200 to 1.3400. At the low of 1.3400, the Pound corrected upward. The upward correction was stalled at level 1.3700 resistance. Therefore, the selling pressure may resume. Meanwhile, on July 20 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair is likely to fall to level 2.0 Fibonacci extension or level 1.2913.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The 21-day and 50-SMAs are sloping downward indicating the downtrend. The pair is at level 44 of the Relative Strength period 14. It indicates that the market is in the downtrend zone and below the centerline 50. The currency pair is capable of a further downward move.

GBP/USD Medium-term Trend: Bearish
On the weekly chart, the pair is in a downward move. The currency pair has broken below the moving averages. There is a likelihood of further downward move. Meanwhile, on July 19 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair is likely to fall to level 1.618 Fibonacci extension or level 1.3159.

GBP/USD – Weekly Chart

Weekly Chart Indicators Reading
The pair is above the 30% range of the daily stochastic. The stochastic bands are sloping horizontally. The market is in a bearish momentum. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for GBP/USD
The GBP/USD may further fall on the downside. The pair has broken below the moving averages indicating further downward move. Buyers have an uphill task to push the pair above the moving averages.

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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.