GBP/USD Is in Sideways Move, Battles Resistance at Level 1.4000

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Key Support Levels: 1.3400, 1.3200, 1.3000

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Key Resistance Levels: 1.4200, 1.4400, 1.4600

GBP/USD Price Long-term Trend: Ranging
Since September 3, GBP/USD is stuck at level 1.3891. The bulls have made three attempts to break the resistance at the recent high but to no avail. On September 3, the currency pair was repelled as it fell to 1.3726 low. The bulls bought the dips as the pair resumed an upward move. However, if the bulls break the overhead resistance, the pair will rise above level 1.4000. Meanwhile, on September 3 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 1.4069.

GBP/USD – Daily Chart

Daily Chart Indicators Reading:
The currency pair is at level 56 of the Relative Strength period 14. It implies that the pair is in the uptrend zone and above the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways move. The pair is stuck below level 1.3891

GBP/USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an uptrend. The upward move is repelled at the resistance of 1.3888. In the second uptrend, the pair is still facing rejection at the 1.3900 resistance zone. Meanwhile, on the September 10 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the Pound is likely to rise to level 2.618 Fibonacci extensions or level 1.4188.

GBP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is above the 75% range of the daily stochastic. The market is in bullish momentum. It is approaching the oversold region. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for GBP/USD
Since July, GBP/USD has been in a range-bound move below level 1.4000. The pair has failed to break above the overhead resistance as the market continues range-bound movement below the resistance. The uptrend will resume if the overhead resistance is breached. According to the Fibonacci tool, the pound is likely to rise to level 1.618 Fibonacci extensions or level 1.4069.

 

Source: https://learn2.trade

 

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