GBP/USD Price Analysis – October 19
GBP/USD is seen facing the nearest resistance level of $1.390 and further increase may break up the resistance level of $1.395 which may lead the price to $1.400 and $1.405.
GBP/USD Long-term Trend: Ranging (Daily Chart)
Resistance Levels: $1.395, $1.400, $1.405
Support Levels: $1.360, $1.355, $1.350
GBP/USD is bullish on the long-term outlook as the bulls were fully in control of the GBP/USD market without much interruption from the bears. The buyers continue to gain momentum as the 9-day moving average crosses above the 21-day moving average. However, the bullish momentum is strong enough to break above the upper boundary of the channel. It is currently making an attempt to break up the resistance level of $1.380.
GBP/USD Price Analysis: GBP/USD Bulls May Exert More Pressure
At the time of writing, the currency pair is trading above the two moving averages, the 9-day MA remains above the 21-day MA which indicate a bullish momentum. The technical indicator Relative Strength Index (14) plans to cross above 60-level as the signal line points toward north to indicate buy signal. Therefore, any further bullish movement may touch the resistance level of $1.390 which could lead the potential resistance levels of $1.395, $1.400, and $1.405.
On the contrary, if the current price level of $1.370 holds, the market price may consolidate at this level and the price could move towards the south. However, if the price falls below the 9-day and 21-day moving averages, it may hit the supports at $1.360, $1.355, and $1.350.
GBP/USD Medium-term Trend: Bullish (4H Chart)
GBP/USD is bullish on the 4-hour chart but the last few hours trading were bearish and the support level of $1.379 was touched. The last two hours trading has been bearish which is acting as a pullback at the resistance level. Meanwhile, before now, the bulls’ momentum has been increasing as the trading of GBP/USD continues above the 9-day and 21-day moving averages at a distance which indicates a strong bullish momentum in the currency pair.
However, the resistance level could be found at $1.390 and above while the supports remain below the 9-day and 21-day moving averages at $1.371 and below. The technical indicator Relative Strength Index (14) with the signal line is pointing below 70-level which could suggest more bearish signals into the market.