GBPUSD Upside Bias Retreats Below 1.3600 Level Amid COVID-19 Lockdown

GBPUSD Upside Bias Retreats Below 1.3600 Level Amid COVID-19 Lockdown

GBPUSD Price Analysis – January 17

The GBPUSD is trading under the 1.3500 marks after the pair lost upside traction in the prior session. The pervading sentiment suggests there is still some downside move before the pair advances again. UK PM Boris Johnson announced new travel restrictions starting on Monday.

Key Levels
Resistance Levels: 1.3800, 1.3700, 1.3624
Support Levels: 1.3572, 1.3429, 1.3300
GBPUSD Long term Trend: Ranging
Earlier in the prior session, the GBPUSD traded up at 1.3698 level which was the highest level in two years. The move below that level turned the buyers to sellers which were slowed by the 1.3572 support level. The RSI is heading south in the positive area, while the price remains in the bullish territory.

If the positive traction fails to hold and prices turn lower, the next horizontal level at 1.3429 level is the nearest support that could halt steeper declines. If breached, it could shift the focus to the downside and prices could slip towards the ascending trendline support around the 1.3300 level.
GBPUSD Short term Trend: Ranging
GBPUSD dropped to 1.3576 last week and closed higher. Initial bias remains neutral this week. On the other hand, a break of 1.3572 should turn intraday bias downward to retest the 1.3177 low as well as the retracement from 1.1409 to 1.3429 at 1.2750 levels.

On the other hand, however, a break of 1.3624 will resume the rebound from 1.3177 to retest the 1.3700 high. In the 4 hours chart, the risk is shifting to the downside as the pair meets sellers under the ranging 5 and 13 moving average, which continues to fall below the 1.3700 level.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.