GBP/USD Faces Rejection at Level 1.3298, May Decline to 1.2965 Low
Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.3400, 1.3200, 1.3000
GBP/USD Price Long-term Trend: Bearish
GBP/USD is in a downward correction but may decline to 1.2965 low. In the first downtrend, the pair declined above level 1.3000 and pulled back. The bears have resumed the downward move to retest the 1.3000 support. Meanwhile, on January 22 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the Pound will fall to level 2.0 Fibonacci extension or 1.2965. From the price action, the market has reached the Fibonacci extension and it is reversing upward.
Daily Chart Indicators Reading:
The Pound is at level 38 of the Relative Strength Index for period 14. The market is approaching the oversold region and it is below the centerline 50. The selling pressure has resumed. The 21-day line and 50-day line moving averages are sloping downward indicating the downtrend.
GBP/USD Medium-term Trend: Bearish
On the 4-hour chart, the Pound is in a downtrend. The bulls broke below the moving averages as the currency pair reached the low of level 1.3050. Meanwhile, on March 24 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the Pound will fall to level 1.618 Fibonacci extension or 1.3075.
4-hour Ch.art Indicators Reading
The Pound has fallen below the 20% range of the daily stochastic. The pair is in the oversold region. The 21-day and 50-day SMAs are sloping horizontally indicating a sideways move.
General Outlook for GBP/USD
The Pound is in downward correction but may decline to 1.2965 low .The Pound is revisiting the previous lows of 1.3000 and 1.3050 price levels. It is expected to reach the low of level 1.2965.
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