GBP/USD Resumes Upward Move, Faces Rejection at Level 1.3850

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‘s downward move has reached bearish exhaustion. The pound has resumed an upward move since July 21. The price has broken the 21-day SMA. A break above the moving averages will propel the pair to rise. Meanwhile, on June 21 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 extension or level 1.3544. From the price action, the GBP/USD fell to 1.618 Fibonacci extension or level 1.3571.

Daily Chart Indicators Reading:
The Pound 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 southward indicating the downtrend.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. The pound is trading above level 1.3800. The market is presently facing resistance at the recent high. On July 22 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the pair is likely to rise but reverse at level 1.272 Fibonacci extension or level 1.3842.

4-hour Chart Indicators Reading
The Pound is above the 80% range of the daily stochastic. The pair has reached the overbought region of the market. Sellers are expected to emerge. The 21-day and 50-day SMAs are sloping downward indicating the downward move. The price bars are above the moving averages which indicate further upward move.

General Outlook for GBP/USD
GBP/USD pair has resumed upward move. The Pound has risen to level 1.3820. The upward move is facing resistance at level 1.3845. According to the daily stochastic, the Pound has reached the overbought region of the market. Further upward move is doubtful.

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