GBPUSD has become corrective, but still sustains below 1.4030 to 1.4000 resistance level. GBPUSD bears are holding the bearish momentum below 1.4000 psychological event area. What is next? Bears to continue further downside 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.
June 28, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3915 area and trying to push upside. After breaking below 1.4030 to 1.4000 significant support level, the bears pushed the price down and reached 1.3830 to 1.3800 area. However, the bears failed to break below 1.3830 to 1.3800 support level and bounced upside with a weekly bullish candle. As per the current price action, the price may recover higher towards 1.4000 to 1.4030 resistance area again in the coming days.
GBPUSD Bears Holding as the Resistance Level Working Strongly
GBPUSD is currently residing near 1.3915 area and trying to push higher. However, the price broke above the dynamic level of 20 EMA on the intraday chart.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD bears are holding the momentum and currently trading around 1.3915 area. As per the current scenario, if the price can have an impulsive bullish candle close over the last candle’s high, the price may recover higher towards 1.4000 to 1.4030 resistance area in the process. So, if the price recovers upside towards 1.4000 to 1.4030 area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards 1.3830 to 1.3800 area again in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support to push the price higher. Along with this, the Stochastic Oscillator lines are currently residing above the oversold level 20 and had a bullish crossover. It indicates that the price may recover further upward in the days ahead.
GBPUSD May Decline Further Lower
According to the daily chart, GBPUSD is holding the bearish momentum as the bears are still optimistic. As per the current price action, the price may recover higher towards 1.4000 to 1.4030 resistance area in the days ahead. So, if the price retraced towards 1.4000 to 1.4030 area and rejects with an impulsive daily bearish candle, the bears may sustain the bearish pressure towards 1.3830 to 1.3800 area as a first target. The second target will be 1.3670 to 1.3650 area if the price can break below 1.3830 to 0.3800 support level in the process.
Image: GBPUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above 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 coming days. However, the Kumo Cloud is also residing over the price, which may work as strong resistance as well.
To conclude, as long as the price residing below the dynamic level, the bias will remain bearish. As the overall momentum is still bearish, there is a high chance that the price may decline further after an upside retracement in the coming days.