GBP/USD Resumes Uptrend, Battles Resistance 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 has been in a sideways move since July. Today, the Pound is rising upward after falling to level 1.3620. In July, the market retested the low of 1.3620 and resumed upward to level 1.4000. Today, buyers are pushing the pair to the previous high of level 1.4000. The uptrend will resume if price breaks above level 1.4000. Otherwise, the range-bound move will continue.

Daily Chart Indicators Reading:
GBP/USD is at level 49 of the Relative Strength period 14. It implies that there is a balance between supply and demand. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways move. The pair is capable of falling on the downside.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is rising to break above the resistance at level 1.4000. The upward move is doubtful as the market reaches the overbought region. Meanwhile, on the August 27 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Pound is likely to rise to level 1.618 Fibonacci extensions or level 1.3842.

4-hour Chart Indicators Reading
The Pound is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers are likely to emerge in the overbought region. The 21-day and 50-day SMAs are sloping upward indicating the upward move.

General Outlook for GBP/USD
GBP/USD has resumed upward move but faces resistance at level 1.4000. On August 27, the pair was repelled as the pound fell to the low of 1.3740. The pair is resuming upward to break the resistance at level 1.4000. A breakout will signal the resumption of an uptrend. According to the Fibonacci tool, the pound will rise to level 1.618 Fibonacci extensions or level 1.3842.


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