GBPUSD bearish pressure has been quite impulsive and reached at 1.2250 area. Can GBPUSD price break below $1.2250 area again? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBPUSD Technical Analysis.
April 22, 2020 | AtoZ Markets – GBPUSD is currently trading around 1.2280 area after the price bounced from 1.2250 on the intraday chart. The price retraced more than 61.8 per cent of the recent bullish wave and pushed lower. As per the current price action, bears are quite strong may sustain the bearish momentum in the coming days.
The British Pound saw a heavy selling pressure against the U.S. Dollar on Tuesday. Currently, President Donald Trump’s administration is considering the chance of providing liability protection to the tiny businesses that reopen and bring their workers as the United States trying to recover from the Coronavirus damages.
Furthermore, National Economic Council Director, Larry Kudlow said reporters, “Liability protection is something we are looking at very carefully. We want small business to have some confidence that if they do reopen, they’ll stay open. So that would be one of the key factors.”
On the other hand, the United Kingdom government made a decision to allow the Chinese company Huawei to build the country’s 5G phone network. Besides, Simon McDonald, permanent under-secretary and head of the diplomatic service at the foreign ministry said to the lawmakers, “As you know … the government decided to proceed with an investment but with very strict conditions … As far as I know that … is a firm decision and is not being reopened.”
He also added, “China is a very important partner of the United Kingdom and I think it’s compatible to proceed with the Huawei decision and have the strategically independent relationship that I have been talking about.”
GBPUSD Breaking Below Crucial Level to Continue Lower?
GBPUSD is currently residing near 1.2280 area and trying to push lower. The price broke below the dynamic level of 20 EMA on the daily chart, which indicates bears are quite strong may continue further in the days ahead.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD is currently residing near 1.2280 area and trying to decline further. The price facing support at 1.2250 area but bears are still quite strong. As per the current price action, if the price can have an impulsive 4-hour close above 1.2250 area, the bulls may regain momentum and push the price higher towards 1.2480. Alternatively, if the price breaks below 1.2250 area with an impulsive close, the bears may continue the bearish pressure towards 1.1950 in the process.
Furthermore, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and Tenkan line. The dynamic levels may work as a strong resistance to push the price down in the coming days. Besides, the Chikou Span broke below the Kumo Cloud, which indicates bears are still quite strong. Along with, the MACD lines are residing below the 0.00 level, which also indicates further bearish pressure can be seen.
Can GBPUSD Reach at 1.1450 Area?
According to the Daily chart, GBPUSD is currently trading around 1.2280 area after breaking below the dynamic level. As per the current price action context, if the price can break below 1.2250 area with a daily bearish close, the bears may push the price down towards 1.1450 key level area. In contrast, if the price pushes higher and have a daily close above 1.2640 area, the bulls may recover higher towards the 1.3200 area in the days ahead.
Image: GBPUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may act as a strong resistance and push the price down. Alternatively, if the price breaks above the dynamic level, bulls may gain momentum in the process. Moreover, the price also broke below the Fibo level 50, which is a good sign of further bearish momentum. Besides, the MACD lines are residing near 0.00 level and may have a bearish intersection.
To conclude, GBPUSD bears are still optimistic as all indicators are showing bearish continuation. An impulsive daily close above or below the range is required to find the definite trend in the coming days.