GBP/USD Resumes Selling Pressure, May Slide to Level 1.3163

Updated:


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 still in a downward move. The currency pair is trading in the bearish trend zone. The selling pressure was accelerated when the pair faced rejection at level 1.3800. The current downtrend has reached the low of level 1.3193. Meanwhile, on September 27 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that GBP/USD is likely to fall to level 1.618 Fibonacci extension or level 1.3163.

GBP/USD – Weekly Chart

Daily Chart Indicators Reading:
GBP/USD is at level 32 of the Relative Strength Index period 14. The currency pair is approaching the oversold region of the market. In the same way, the selling pressure is reaching bearish exhaustion. The pair has a bearish crossover. That is, the 21-day SMA crosses below the 50-day SMA indicating a sell order. The price bars are below the 21-day and 50-day lines moving averages indicating a further downward move.

GBP/USD Medium-term Trend: Bullish
On the Daily chart, the pair is in a downward move. The bulls retested level 1.3800 on four occasions before continuing the current downtrend. Meanwhile, on September 29 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that GBP/USD is likely to fall to level 1.618 Fibonacci extension or level 1.2906.

GBP/USD – Daily Chart

Daily  Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. The Pound is in the oversold region. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for GBP/USD
The Pound is falling but has reached the oversold region of the market. According to the Fibonacci tool, the pair will further decline to level 1.3163 or 1.2906.

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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.