GBPUSD bears have regained momentum after rejecting 1.4240 to 1.4200 key resistance area. GBPUSD dropped below 1.4200 significant event area. Will the price decline 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.
June 1, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.4175 area and trying to push downside. The bulls pushed the price higher after bouncing from 1.4100 to 1.4120 support level, but failed to sustain the bullish trend over 1.4200 to 1.4240 area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
GBPUSD Dropped Below as the Key Level Worked Strongly
GBPUSD is currently residing near 1.4175 area and trying to decline further. However, the price is residing inside the ranges of 1.4100 to 1.4240 area for an extended period.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD dropped below and currently trading around 1.4175 area. As per the current price action, the price may decline towards 1.4120 to 1.4100 area in the process. So, if the price declines towards 1.4120 to 1.4100 support area and bounced upside with an impulsive bullish candle, the bulls may regain momentum and push the price upward towards 1.4200 to 1.4240 area again in the coming days. On the contrary, if the price can break below 1.4120 to 1.4100 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards 1.4020 to 1.4000 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 after having a bearish crossover. It indicates that the bears may continue further lower in the process.
GBPUSD Bulls Are Still Residing on the Market
According to the daily chart, GBPUSD dropped below, but the overall bias is still bullish. As per the current scenario, the price may retrace downward towards 1.4120 to 1.4100 area in the coming days. So, if the price retraced towards 1.4120 to 1.4100 area and bounced higher with an impulsive bullish candle, the bulls may sustain the bullish trend towards 1.4200 to 1.4240 area as a first target. The second target will be 1.4320 to 1.4350 key area if the price can break above 1.4200 to 1.4240 area in the process.
Image: GBPUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level of 20 EMA may act as a strong support to push the price upside. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the days ahead.
To conclude, as long as the price residing over 1.4100 to 1.4120 support level, the bias will remain bullish. As the overall trend is still bullish, there is a high chance that the bulls may continue the bullish trend further after a downside retracement in the coming days.