GBP/USD Is in a Downtrend as It Faces Rejection at 1.2360

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 is in a downtrend as it faces rejection at 1.2360. After the breakdown, the price movement was restricted by the 21-day SMA. The Pound will fall and break below the 1.2000 support if the bulls fail to break the 21-day line SMA. However, the currency pair will be compelled to a range-bound move if the current support holds.

Daily Chart Indicators Reading:
GBP/USD is at level 43 of the Relative Strength Index for period 14. The Pound is still in the downtrend zone and capable of falling to the downside. The price bars are below the 21-day line SMA and the 50-day line SMA indicating a further decline. The 21-day line and 50-day line moving averages are sloping downward indicating the downtrend.

GBP/USD Is in a Downtrend as It Faces Rejection at 1.2360
GBP/USD – Daily Chart

GBP/USD Medium-term Trend: Ranging
On the 4-hour chart, GBP/USD was in a sideways move. The Pound is fluctuating below and above the moving averages. The upward move will resume when the bullish momentum is sustained above the moving averages.

GBP/USD Is in a Downtrend as It Faces Rejection at 1.2360
GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
Meanwhile, the market is above the 40% range of the daily stochastic. The pair is in a bullish momentum. The 21-day and 50-day SMAs are sloping horizontally indicating a sideways move.

General Outlook for GBP/USD
GBP/USD is in a downtrend s it faces rejection at 1.2360. The currency price is retesting the moving averages to break above it. The downtrend will resume if the price falls and breaks below level 1.200 support.


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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.