GBP/USD Resumes Uptrend, Battles Resistance at Level 1.3560

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
Since December 20, GBP/USD has begun resumption of an upward move but battles resistance at level 1.3560. The bearish trend is presumed to have ended on December 29. According to the Fibonacci tool, the bearish trend has subsided as buyers resumed upward move. On July 19 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the market will fall to level 1.618 Fibonacci exhaustion. From the price action, the Pound has reversed from the Fibonacci extension. If the currency price breaks above the moving averages or level 1.3800, it will signal the resumption of the uptrend.

GBP/USD Resumes Uptrend, Battles Resistance at Level 1.3560
GBP/USD – Weekly Chart

Weekly Chart Indicators Reading:
With the current upward move, the Pound is at level 48 of the Relative Strength period 14. The Pound is in the downtrend zone and below the centerline 50. The currency prices are below the moving averages
which often indicate a downward movement of prices. A break above the moving average will terminate the downward correction.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an uptrend. The price has broken above the moving averages and reached a high of 1.3539. Meanwhile, on December 30 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair is likely to rise to level 2.0 Fibonacci extension or level 1.3555.

GBP/USD Resumes Uptrend, Battles Resistance at Level 1.3560
GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is above the 70% range of the daily stochastic. It is in a bullish momentum and approaches the overbought region. The currency prices are above the 21-day and 50-day SMAs. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for GBP/USD
The Pound has regained bullish momentum but battles resistance at level 1.3560. If buyers sustain the bullish momentum above level 1.3800, the Pound will resume upside momentum.


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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.