GBP/USD Price Analysis – August 17
As the daily chart reveals, the bears’ pressure may take the price further to penetrate the $1.370 level, the support level of $1.360 may be tested and break down to expose the support levels of $1.350.
GBP/USD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $1.395, $1.400, $1.410
Support Levels: $1.360, $1.355, $1.350
GBP/USD is looking bearish in the long term. For the past few days, the bears were fully in control of the GBP/USD market, the currency pair crosses below the 9-day and 21-day moving averages from the opening price of $1.384 and move towards $1.370 after passing through the confluence at $1.380 level. Meanwhile, this is a bearish reversal candle and the currency pair may continue to fall. Looking at the current market movement, GBP/USD is seen hovering at the $1.373 level.
GBP/USD Price Analysis: Bears May Exerts More Pressure
At the moment, the current candle emerges as a bearish one as soon as the European begins. The currency pair is now trading at $1.373 support and this is immediately after GBP/USD touches the daily low of $1.372 level. Therefore, a further increase in the bears’ pressure may reduce the currency price in which the previous low of $1.372 may be surpassed. More so, any further bearish movement could lead to the support levels of $1.360, $1.355, and $1.350 respectively.
However, the currency pair 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 in the market. Meanwhile, the technical indicator Relative Strength Index (14) is likely to slide below 40-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 $1.395, $1.400, and $1.405 above the upper boundary of the channel.
GBP/USD Medium-term Trend: Bearish (4H Chart)
On the medium-term outlook, GBP/USD is currently bearish. Yesterday, the price level of $1.385 was seen falling from the range-bound, and today, the price touches the support level of $1.372. However, the market price is now rising to the upside to trade above the $1.373 level.
Moreover, if the currency pair moves toward the 9-day and 21-day moving averages, GBP/USD could hit the resistance level of $1.378 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 $1.368 and below. The technical indicator Relative Strength Index (14) is seen moving within the oversold region.