GBP/USD Resumes Downward, Faces Rejection at Level 1.4000

GBP/USD Resumes Downward, Faces Rejection at Level 1.4000

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 is in a downward move after its rejection from level 1.4200. After the resistance, the Pound declined to level 1.3800 low. The bulls bought the dips to resume an upward move. The upward correction was terminated at level 1.4000 as the market resumed its downward move. Meanwhile, on June 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Pound is likely to fall to level 1.618 Fibonacci retracement or level 1.3534.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The Pound is at level 39 of the Relative Strength period 14. It indicates that the Pound is in the downtrend zone and capable of falling on the downside. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend.

GBP/USD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move as it fell to level 1.3800. The pair corrected upward but was repelled. On June 17 uptrend a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair is likely to fall to level 1.618 Fibonacci extension or level 1 3574.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
GBP/USD is below the 20% range of the daily stochastic. The Pound is in a bearish momentum. The 21-day and 50-day SMAs are sloping downward indicating the downward move. The current upward move has been terminated as price breaks below the moving averages.

General Outlook for GBP/USD
GBP/USD pair has resumed downward move. The price correction is over. The Fibonacci tool has indicated a downward move to level1.618 Fibonacci extension or level 1 3574.


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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.