GBP/USD Price Analysis – September 21
According to the daily chart, the bulls may increase their momentum and break above the $1.370 level, there may be a bullish movement to test the $1.380 and $1.390 levels.
GBP/USD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $1.380, $1.385, $1.390
Support Levels: $1.354, $1.349, $1.344
GBP/USD is looking bearish in the long term as the bears remain in control of the market. The currency pair is currently moving towards $1.370 after touching the support level of $1.364. Meanwhile, the price reached the dynamic resistance level of $1.369 but was unable to break it up; meanwhile, there could be a bearish reversal candle and the currency pair may fall. Looking at the current market movement, GBP/USD is seen hovering at the $1.367 level.
GBP/USD Price Analysis: GBP/USD May Experience Bullish Reverse
Looking at the daily chart, the current candle emerges as a bullish one after touching the daily high of $1.367. The currency pair is now trading below the 9-day and 21-day moving averages. Therefore, a further increase in the bears’ pressure may decrease the currency pair in which the previous low of $1.364 may be surpassed. More so, any further bearish movement could lead to the support levels of $1.354, $1.349, and $1.344 respectively.
At the moment, GBP/USD is likely to break below the lower boundary of the channel for it to continue to trade below the two MAs which connotes a gradual increase in the bearish pressure within the market. Meanwhile, the technical indicator Relative Strength Index (14) is likely to make a quick turn above 40-level with the signal line pointing up to indicate a buy signal. Similarly, crossing above the 9-day and 21-day moving averages may locate the resistance levels at $1.380, $1.385, and $1.390.
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 $1.384 was seen falling from the range-bound, and today, the price touches the support level of $1.364. However, the market price is still falling below the 9-day moving average to trade below the $1.360 level.
Moreover, if the currency pair crosses above the 9-day moving average, GBP/USD could hit the resistance level of $1.375 and above. Meanwhile, as the red-line of the 9-day MA is below the green-line of the 21-day MA, the currency pair may move towards the support level of $1.359 and below. The technical indicator Relative Strength Index (14) is seen moving below 35-level to increase the bearish movement.