GBP/USD Resumes Downward Move, Targets Level 1.3491

29 March 2021 | Updated: 29 March 2021

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
The British Pound has been in a downward move after its rejection at level 1.4200. The pair has fallen and broken below the moving averages. The implication is that the selling pressure will persist. On March 5 downtrend, a retraced candle body tested the 61,8% Fibonacci retracement level. The retracement implies that the pound will further decline to 1.618 Fibonacci extension or level 1.3491.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The 21-day and 50-SMA are sloping downward. The pair has fallen to level 45 of the Relative Strength Index period 14. This indicates that the Pound is in the downtrend zone and below the centerline 50. The pair is likely to further decline on the downside.

GBP/USD Medium-term Trend: Bearish
On the 4-hour chart, the pair is falling after a range-bound movement in March. In February and March, the Pound was fluctuating between levels 1.3850 and 1.4000. On March 19, level 1.3850 was broken by price.
The selling pressure resumed after price pulled back and retested level 1.3850. The pair fell to level 1.3700. The market corrected upward to retest level 1.3850 before resuming downward.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The GBP/USD pair is currently above the 80% range of the daily stochastic. It indicates that the pair is in the overbought region. Sellers are likely to emerge. The SMAs are sloping southward indicating the downtrend.

General Outlook for GBP/USD
The GBP/USD is now in a downward move. The pair has retested level 1.3850 for the resumption of the downtrend. The downtrend is likely to reach 1.618 Fibonacci extension or level 1.3491.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.