GBPUSD has become impulsive and non-volatile and reached near March’s high. The price is currently facing resistance around 1.3160 area and had a weekly close below it. GBPUSD bullish trend coming to an end after reaching 1.3160? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBPUSD Technical Analysis.
August 4, 2020, | AtoZ Markets – GBPUSD is currently trading around 1.3090 area and trying to climb higher. The price had a daily bearish pin bar close after rejecting 1.3160 resistance level. As per the current price action, the dynamic level of 20 EMA may pull the price back to the mean in the coming days.
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GBPUSD Bullish Trend Facing Strong Resistance Around March’s High
GBPUSD is currently residing near 1.3090 area and trying to push higher. Moreover, the price bounced higher from the dynamic level of 20 EMA on the intraday chart.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD bullish trend is currently facing resistance around 1.3160 area. As per the current price action, if the price can break above 1.3160 resistance level, GBPUSD may sustain the bullish trend towards 1.33 area in the coming days. Alternatively, if the price rejected from 1.3160 area and had an impulsive bearish candle close below it, the bears may regain momentum and decline towards 1.2970 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level of 20 EMA worked as strong support and pushed the price higher. Besides, the Kijun line and the Tenkan line worked as a confluence of the dynamic level. In contrast, the bears may regain momentum if the price can break below the dynamic level of 20 EMA in the coming days.
GBPUSD May Revert Back to the Mean
According to the daily chart, GBPUSD is currently trading around 1.3090 area and trying to continue the bullish trend. As per the current scenario, if the price can take-out the bearish daily pin bar and had a daily close above it, the bulls may recover higher towards 1.34 area. In contrast, if the price rejects 1.3160 area again, the bears may push downward towards 1.2780 support level.
Image: GBPUSD Daily Chart
Apart from this, the dynamic level of 20 EMA is currently residing far below from the current price. It may pull the price down as mean reversion. Also, the RSI line is currently residing above the overbought level 70. It indicates that the GBPUSD bullish trend may come to an end. In addition, the Stochastic Oscillator lines are also currently residing above the overbought level 80 and had a bearish cross over. It also indicates that the bears may regain momentum in the coming days.
To conclude, after bouncing from the dynamic level of 20 EMA on the daily chart, GBPUSD bullish trend has gained almost 650 pips. A daily close is required to identify the definite momentum in the days ahead.