GBP/USD Faces Rejection at Level 1.3900, Resumes Selling Pressure

GBP/USD Faces Rejection at Level 1.3900, Resumes Selling Pressure

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 has fallen to level 1.3740 and pulled back. The selling pressure resumes has resumed after the Pound was repelled at 1.3900. Meanwhile, on June 21 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 1.3545.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The Pound is at level 38 of the Relative Strength period 14. It implies that the market is approaching the oversold region. The Pound is in the downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend.

GBP/USD Medium-term Trend: Bearish
On the 4-hour chart, the pair was consolidating below the resistance at level 1.4200 before the resumption of a downward move. On June 20 downtrend a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair is likely to fall to level 1.618 Fibonacci extension or level 1 3463.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The Pound is below the 80% range of the daily stochastic. The Pound is in a bearish momentum. The 21-day and 50-day SMAs are sloping downward indicating the downward move. The price bars are below the moving averages which indicate further downsides.


General Outlook for GBP/USD
GBP/USD pair is in a downward move. The moving averages have a bearish crossover as the 21-day SMA crosses over the 50-day SMA which indicates a sell signal. According to the Fibonacci tool analysis, the Pound will reach level 1.618 Fibonacci extension or level 1.3545


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.