GBPUSD has become impulsive and non-volatile after bouncing from 1.3650 to 1.3700 support level. GBPUSD is facing resistance around 1.4000 event area. Bears to regain momentum 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.
April 20, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3985 area and trying to push downside. After rejecting 1.3870 to 1.3850 resistance area, the bears pushed the price down quite impulsively, but failed to sustain the bearish momentum below 1.3700 to 1.3650 area and became volatile. However, the bulls managed to gain momentum again and broke over 1.3850 to 1.3870 resistance level. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.
GBPUSD Facing Resistance as the Price Requires a Downward Retracement
GBPUSD is currently residing near 1.3985 area and trying to push lower. However, the price also broke over the Kumo Cloud on the daily chart.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD is facing resistance and currently trading around 1.3985 area. As per the current price action, the price may retrace downward towards 1.3870 to 1.3850 support level in the coming days. So, if the price retraced towards 1.3870 to 1.3850 support area and bounced upside with an impulsive bullish candle, the bulls may push the price higher towards 1.4000 to 1.4020 area again in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price downside as a mean reversion. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
GBPUSD Bulls Are Optimistic
According to the daily chart, GBPUSD is facing resistance, but the overall momentum is bullish. As per the current scenario, if the price can have a daily bearish candle close below 1.4020 to 1.4000 area, the price may retrace towards 1.3870 to 1.3850 area in the process. So, if the price retraced towards 1.3870 to 1.3850 area and bounced higher with a daily bullish candle, the bulls may sustain the bullish momentum towards 1.4000 to 1.4020 area as a first target. The second target will be 1.4180 to 1.4230 area if the price can break above 1.4000 to 1.4020 area in the coming days.
Image: GBPUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may hold the price as strong support. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. Along with this, the Kumo Cloud may also hold the price as strong support in the process.
To conclude, after an impulsive bullish momentum, the price requires a downside retracement. A daily close is required to identify the definite momentum in the days ahead.