GBPUSD Nose Dive Below 1.3900 Psychological Area – What Next?


GBPUSD has become impulsive and non-volatile after breaking 1.4100 to 1.4080 support level. GBPUSD nose dive below 1.3900 psychological event area. What is next? The bears to continue the bearish pressure further 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 21, 2021, | AtoZ Markets GBPUSD is currently trading around 1.3840 area and trying to climb higher. After breaking below 1.4100 to 1.4080 support level, the bears have regained momentum and pushed the price downside impulsively, and reached 1.3800 to 1.3780 significant event area. As per the current price action context, the price may retrace upside towards 1.3900 to 1.3920 resistance area in the coming days.

GBPUSD Nose Dive as the Bears Regained Momentum

GBPUSD is currently residing near 1.3840 area and trying to push upside. However, the price faced support at the Bollinger Bands lower band on the intraday chart.

GBPUSD Nose Dive

Image: GBPUSD 4 Hour Chart

According to the 4-hour chart. GBPUSD nose dive and currently trading around 1.3840 area. As per the current scenario, if the price can have an impulsive bullish candle close above the last candle’s high, the bulls may push the price upside towards 1.3900 to 1.3920 area in the process. So, if the price can break above 1.3900 to 1.3920 resistance area, the bulls may continue further higher towards 1.3980 to 1.4000 area. On the contrary, if the price rejects 1.3900 to 1.3920 area with an impulsive bearish candle, the bears may regain momentum and push the price down towards 1.3800 to 1.3785 area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may pull the price upside as a mean reversion. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process.

GBPUSD May Revert Back to the Mean

According to the daily chart, GBPUSD nose dive as the bears are optimistic. As per the current price action, the price may retrace upward towards 1.3980 to 1.4000 area in the coming days. So, if the price retraces higher towards 1.3980 to 1.4000 area and rejects with an impulsive daily bearish candle, the bears may regain momentum and push the price down towards 1.3800 to 1.3785 area as a first target. The second target will be 1.3720 to 1.3700 area if the price can break below 1.3800 to 1.3785 support level in the process.

GBPUSD Nose Dive

Image: GBPUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing over the price, which may pull the price higher as a mean reversion. Moreover, the Stochastic Oscillator lines are currently residing below the oversold level 20 and may have a bullish crossover. It indicates that the bulls may regain momentum for a while in the days ahead.

To conclude, after an impulsive bearish momentum, the price requires an upside retracement at least towards the dynamic level on the daily chart. An impulsive daily close will help to identify the definite momentum in the coming days. 

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