GBP/USD Is in a Fresh Downtrend, Targets Level 1.3574

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 downward move as the pair faces rejection at level 1.3850. The pound fell and retested level 1.3850 which resulted in further selling pressure. Meanwhile, on October 27 downtrend; a retraced candle body tested the 50 % Fibonacci retracement level. The retracement indicates that the pair will fall to level 2.0 Fibonacci extension or level 1.3573. From the price action, the pair has fallen to the low of level 1.3651.

Daily Chart Indicators Reading:
The Pound 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 likely to further decline. In the same vein, the crypto’s price is below the moving averages which indicate further downsides.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair was earlier in a range-bound move but the pound faces stiff resistance at level 1.3800. The currency price broke below the moving averages to resume selling pressure. Meanwhile, on October 22 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the pair is likely to fall to level 2.618 Fibonacci extension or level 1.3574.

4-hour Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. The pound has fallen to the oversold region of the market. Buyers are likely to emerge in the oversold region to push prices upwards.
The 21-day and 50-day SMAs are sloping downward indicating the downtrend. The price bars are below the 50-day SMA.

General Outlook for GBP/USD
The currency pair is likely to further decline as price breaks below the moving averages. According to the Fibonacci tool, the pair is likely to fall to level 2.618 Fibonacci extension or level 1.3574.


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