GBP/USD Reaches Oversold Region as It Declines to Level 1.0966

Technical indicators:
Major Resistance Levels – 1.2800, 1.2900, 1.3000
Major Support Levels – 1.1900, 1.1800, 1.1700

GBP/USD Long-Term Analysis: Bearish
GBP/USD is in a downtrend as it declines to level 1.0966. On September 12, buyers failed to keep the price above the 21-day line SMA. This resulted in a further downward move. Meanwhile, on September 7 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that the Pound will fall to level 2.0 Fibonacci extension or level 1.0958.

GBPUSD Indicator Analysis
GBPUSD is at level 20 of the Relative Strength Index for period 14. It indicates that the Pound has fallen to the oversold region of the market. The selling pressure has reached bearish exhaustion. The currency price bars are below the moving average lines which indicates further decline. The pair is below the 20% range of the daily stochastic. This has confirmed that the Pound has reached the oversold.

What Is the Next Direction for GBP/USD?
On the 4-hour chart, the Pound is in a downward move as it declines to level 1.0966. On September 22, the Pound failed to break above the 21-day line SMA. This has caused the currency pair to decline. Meanwhile, on the September 22 downtrend, a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement suggests that the Pound will fall to level 1.618 Fibonacci extension or level 1.0624. From the price action, the pair has fallen beyond the target price level.

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