GBP/USD Rebounds above Level 1.3160, Targets Level 1.3800

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 been in a downtrend since May as it targets level 1.3800. The selling pressure has reached bearish exhaustion. The Pound fell to the low of level 1.3160 and rebounded. The pair is rising to the upside. The current downward correction is likely to be over if buyers push the currency pair above level 1.3800. Meanwhile, the Pound has risen to level 1.3448 at press time. Meanwhile, on July 19 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that GBP/USD is likely to fall to level 1.618 Fibonacci extension or level 1.3171. From the price action, the currency pair has rebounded above level 1.3160 to resume upward.

Daily Chart Indicators Reading:
The Pound is in an upward move as it reaches level 45 of the Relative Strength Index period 14. It indicates that the Pound is in the downtrend zone and below the centerline 50. The price bars are below the 21-day line and 50-day line SMAs are sloping southward.

GBP/USD Medium-term Trend: Bullish
On the 4- hour chart, the pair has resumed an uptrend. The currency price has broken above the moving averages. The market has risen to the overbought region of the market. Meanwhile, on December 23 uptrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement indicates that GBP/USD is likely to rise but reverse at level 1.272 Fibonacci extension or level 1.3503.

4-hour Chart Indicators Reading
The pair is above the 80% range of the daily stochastic. The currency pair has reached the overbought region as sellers may emerge to push prices down. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for GBP/USD
The Pound has regained bullish momentum as it it targets level 1.3800. The currency price is approaching the overbought region of the market. The implication is that the Pound will fall again to the downside.

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