GBPUSD has become impulsive and non-volatile after bouncing from 1.4000 to 1.4020 support level. GBPUSD is holding the bullish bias over 1.4150 psychological area. Will the bulls continue to push the price further upside 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.
May 18, 2021, | AtoZ Markets - GBPUSD is currently trading around 1.4200 area and trying to push downside. After an extended period of volatility, the bulls have successfully regained momentum and pushed the price higher, and hit February 2021's key level. As per the current price action context, the price may retrace downward towards the dynamic level of 20 EMA on the intraday chart in the coming days.
GBPUSD Holding the Bullish Bias as the Bulls Are Optimistic
GBPUSD is currently residing near 1.4200 area and trying to retrace lower. However, the price also broke over the Kijun line and the Tenkan line on the intraday chart.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD is holding the bullish bias and currently trading around 1.4200 area. As per the current price action, the price may retrace downward towards 1.4170 to 1.4150 area in the process. So, if the price can break below 1.4170 to 1.4150 area with an impulsive bearish candle, the bears may regain momentum and push the price down towards 1.4020 to 1.4000 area in the coming days. On the contrary, if the price bounced upside from 1.4150 to 1.4170 area with a 4-hour bullish candle, the bulls may recover higher towards 1.4220 to 1.4240 area again in the days ahead.
In addition, 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 act as a strong support to push the price higher. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
GBPUSD May Sustain the Bullish Trend
According to the daily chart, GBPUSD is holding the bullish bias and currently residing near 1.4200 area. As per the current scenario, if the price can have an impulsive daily bearish candle close below 1.4240 to 1.4220 area, the bears may regain momentum and push the price down towards 1.4020 to 1.4000 area in the coming days. On the other hand, if the price can break above 1.4220 to 1.4240 area with an impulsive daily bullish candle close, the bulls may sustain the bullish trend towards 1.4380 to 1.4400 key area in the days ahead.
Image: GBPUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price down as a mean reversion. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and created a bearish divergence. It indicates that the bears may regain momentum in the process.
To conclude, after hitting 1.4240 to 1.4220 key resistance area, the price is currently showing some bearish pressure. As the overall bias is still bullish, there is a high chance that the bulls may continue the bullish trend further after a downward retracement in the coming days.