GBPUSD Bears Active Below 1.3850 Event Area – Will Continue Lower?


GBPUSD bears have regained momentum after rejecting 1.4000 to 1.3980 resistance area. GBPUSD bears are active below 1.3850 psychological event area. Will the bears continue further lower in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBP/USD Technical Analysis. 

July 5, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3840 area and trying to recover higher. After rejecting 1.4000 to 1.3980 resistance level, the bears have regained momentum and pushed the price downside quite impulsively and broke below 1.3870 to 1.3850 significant support level. As per the current price action, the price may retrace upward towards 1.3850 to 1.3870 area in the coming days.

GBPUSD Bears Active Below the Significant Resistance Level

GBPUSD is currently residing near 1.3840 area and trying to push higher. However, the price broke above the dynamic level of 20 EMA on the intraday chart.

GBPUSD Bears

Image: GBPUSD 4 Hour Chart

According to the 4-hour chart, GBPUSD bears are active and currently trading around 1.3840 area. As per the current price action, the price may recover higher towards 1.3850 to 1.3870 area in the coming days. So, if the price can break above 1.3850 to 1.3870 resistance area with an impulsive bullish candle, the bulls may push the price higher towards 1.3980 to 1.4000 area in the process. On the contrary, if the price rejects 1.3870 to 1.3850 area with an impulsive bearish candle, the bears may regain momentum and push the price down towards 1.3730 to 1.3700 area again the days ahead.

Moreover, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. However, the bears may regain momentum if the price can break below the dynamic level in the coming days. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the process.

GBPUSD May Decline Further

According to the daily chart, GBPUSD bears are active below the dynamic level. As per the current scenario, the price may retrace upside towards 1.3870 to 1.3900 area in the process. So, if the price retraced higher towards 1.3870 to 1.3900 resistance area and rejects with an impulsive daily bearish candle, the bears may sustain the bearish bias towards 1.3730 to 1.3700 area as a first target. The second target will be 1.3600 to 1.3580 area if the price can break below 1.3700 to 1.3730 support level in the coming days.

GBPUSD Bears

Image: GBPUSD Daily Chart

In addition, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

To conclude, as long as the price residing below 1.3900 to 1.3870 resistance area, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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