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GBP/USD Consolidates at $1.407 Level, Expecting a Bearish Breakout

Published on

June 15, 2021

GBP/USD Price Analysis – June 15

At the opening of the market today on the daily chart, the market price is seen trading 9-day and 21-day moving averages.

GBP/USD Long-term Trend: Bullish (Daily Chart)

Key levels:
Resistance Levels: $1.430, $1.435, $1.440
Support Levels: $1.390, $1.385, $1.380

GBP/USD is looking bearish in the long term. For the past few weeks, the bulls were fully in control of the GBP/USD market, the price was moved up from the support level of $1.41 towards $1.43 after passing through the confluence at $1.40 level. Meanwhile, the price reached the dynamic resistance level of 48-level but unable to break it up and an evening star candle pattern emerges at this level; meanwhile, this is a bearish reversal candle and the currency pair may fall. Looking at the current market movement, GBP/USD is seen consolidating at the $1.408 level.

What is the Possible Movement for GBP/USD?

Looking at the daily chart, the current candle emerges as a bearish one after touching the daily high of $1.412. The currency pair is now trading at $1.407 support. This is immediately after GBP/USD touches the daily low of $1.403 level. Therefore, a further increase in the bears’ pressure may decrease the currency price in which the previous low of $1.403 may be surpassed. More so, any further bearish movement could lead to the support levels of $1.390, $1.385, and $1.380 respectively.

However, at the moment, the currency pair is likely to break below the lower boundary of the channel so that it may continue to trade below the two MAs which connotes a gradual increase in the bearish pressure in the GBP/USD market. Meanwhile, the technical indicator Relative Strength Index (14) is sliding below 50-level with the signal line bending down to indicate additional sell signals. On the other hand, crossing above the 9-day and 21-day moving averages may locate the resistance levels at $1.430, $1.435, and $1.440.

GBP/USD Medium-term Trend: Bearish (4H Chart)

On the medium-term outlook, GBP/USD is bearish. A few days ago, the price level of $1.418 was seen falling from the range-bound, and today, the price touches the support level of $1.408. However, the market price is now rising towards the 9-day moving average to trade above the $1.408 level.

Moreover, if the currency pair crosses above the 9-day and 21-day moving averages, GBP/USD could hit the resistance level of $1.415 and above. Meanwhile, as the red-line of the 9-day MA is below the green-line of the 21-day MA, GBP/USD may slide towards the support level of $1.403 and below. The technical indicator Relative Strength Index (14) is seen crossing above 40-level to resumes the uptrend.

Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : June 15, 2021

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