GBP/USD Struggles Below Level 1.3345, May Further Decline

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 has been in a downward move since June. The Pound price has been making a series of lower highs and lower lows. On October 1 upward correction, buyers could not keep price above a lower high of level 1.3800. On October 20 lower high of level 1.3800 was the same level as of September 15 lower high. Buyers could not sustain the bullish momentum above that level hence the continuity of the selling pressure. Today, the GBP/USD is trading at level 1.3326 at the time of writing.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
GBP/USD has fallen to level 35 of the Relative Strength Index period 14. The currency pair is in the downtrend zone and is capable of further downside. The price bars are below the 21-day line and 50-day line SMAs indicating a further downward move.

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in a downward move. Buyers have sustained price above the moving averages but faced rejection at a lower high of 1.3500. Meanwhile, on November 12 downtrend; a retraced candle body tested the 50% Fibonacci retracement. The retracement indicates that GBP/USD is likely to fall to level 2.0 Fibonacci extension or level 1.3100.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is above the 40% range of the daily stochastic. The stochastic band is sloping below the 50% range of the daily stochastic. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for GBP/USD
The Pound is likely to further decline on the downside. The currency pair is facing another rejection at the 21-day line moving average. The Pound may reach the low of level 1.2900 or 1.3100


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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.