GBP/USD Is in a Sideways Trend, Battles Resistance at Level 1.4250

GBP/USD Is in a Sideways Trend, Battles Resistance at Level 1.4250

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 pair has risen to 1.4250 and price is fluctuating below the resistance level. Since May 18, the pair has been retesting the resistance zone, Similarly, on February 24, the pair was repelled at the same resistance level and the market declined to level 1.3700. On May 11 uptrend; a retraced candle body tested the 61.8%% Fibonacci retracement level. The retracement indicates that the pair is likely to rise to level 1.618 Fibonacci extension or level 1.4336.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The 21-day and 50-SMAs are sloping upward indicating the uptrend. The pair has a bullish crossover as the 21-day SMA crosses above the 50-day SMA. The Pound is at level 62 of the Relative Strength period 14. It indicates that the pair is in the uptrend zone and it is approaching the overbought region of the market.

GBP/USD Medium-term Trend: Ranging
On the 4-hour chart, the pair is in a sideways move below the resistance zone. The resistance at level 1.4250 is yet to be breached. The pair is fluctuating between levels 1.4050 and 1.4250. On May 11 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement. The retracement indicates that the Pound will rise to level 1.618 Fibonacci extension or level 1.4360.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
GBP/USD is above the 40% range of the daily stochastic. It indicates that the Pound is in a bullish momentum.The 21-day and 50-day SMAs are sloping upward indicating the upward move.

General Outlook for GBP/USD
GBP/USD pair is in a sideways trend. The sideways move will continue except the bulls break the resistance at level 1.4250. Since February the pair has been in a downward correction below the overhead resistance. The Fibonacci tool has indicated that the pair will be reaching level 1.618 Fibonacci extension or level 1.4336.

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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.