GBPUSD bears have regained momentum and nose-dive below 1.3820 to 1.3800 support level. Can GBPUSD break below 1.3700 psychological event level 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 19, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3720 area and trying to push downside. After rejecting 1.3920 to 1.3900 resistance area, the bears have regained momentum and pushed the price downside impulsively and reached 1.3720 to 1.3700 area. As per the current price action context, the price may face strong support around 1.3720 to 1.3700 area in the coming days.
GBPUSD May Break Below as the Overall Momentum Is Bearish
GBPUSD is currently residing near 1.3720 area and trying to continue lower. However, the price is still residing inside the range of 1.3700 to 1.3920 price area.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD is currently trading around 1.3720 area and may break below. As per the current price action, if the price can break below 1.3720 to 1.3700 support level with an impulsive bearish candle, the bears may continue the bearish pressure towards 1.3620 to 1.3600 area in the process. On the contrary, if the price bounced upside from 1.3700 to 1.3720 support level with a bullish candle, the price may recover higher towards 1.3800 to 1.3820 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price downside. Along with this, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the price may recover upside in the days ahead.
GBPUSD May Continue Downward
According to the daily chart, GBPUSD may break below as the bears are optimistic. As per the current scenario, the price may recover higher towards 1.3800 to 1.3820 area in the process. So, if the price recovers higher towards 1.3800 to 1.3820 area and rejects with an impulsive daily bearish candle, the bears may sustain the bearish pressure towards 1.3720 to 1.3700 area as a first target. The second target will be 1.3620 to 1.3600 area if the price can break below 1.3720 to 1.3700 support level in the coming days.
Image: GBPUSD Daily Chart
Moreover, 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 pull the price upside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, as long as the price residing below 1.3820 to 1.3800 area, the bias will remain bearish. An impulsive daily close will help to identify the definite momentum in the coming days.