GBPUSD bulls have regained momentum and broke over 1.3980 to 1.4000 resistance area. GBPUSD strikes above 1.4000 psychological resistance level. Will the price climb further higher 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 11, 2021, | AtoZ Markets - GBPUSD is currently trading around 1.4150 area and trying to push higher. After bouncing from 1.3850 to 1.3870 support level, the bulls pushed the price upside quite impulsively and hit February 2021's high. As per the current price action context, the price may face strong resistance around 1.4160 to 1.4140 area in the coming days.
GBPUSD Strikes Above as the U.S. Dollar Index Dropped
GBPUSD is currently residing near 1.4150 area and trying to recover higher. However, the bulls have gained almost 270 pips after bouncing from 1.3850 to 1.3870 support area.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD strikes above and currently trading around 1.4150 area. As per the current price action, if the price can break above 1.4140 to 1.1460 area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 1.4220 to 1.4240 area in the process. On the contrary, if the price rejects 1.4160 to 1.4140 area with an impulsive bearish candle, the bears may regain momentum and push the price down towards 1.4000 to 1.3980 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. 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 regain momentum in the days ahead.
GBPUSD May Revert Back to the Mean
According to the daily chart, GBPUSD strikes above as the bulls are optimistic. As per the current scenario, if the price can have a bearish candle close below 1.4160 to 1.4140 area, the price may retrace downside towards 1.4000 to 1.3980 support level in the days ahead. So, if the price retraced towards 1.3980 to 1.4000 support area and bounced upside with an impulsive daily bullish candle, the bulls may strike higher towards 1.4140 to 1.4160 area as a first target. The second target will be 1.4320 to 1.4350 area if the price can break above 1.4140 to 1.4160 area in the coming days.
Image: GBPUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may pull the price down as a mean reversion. Besides, the Bollinger Bands' middle band may work as a confluence of the dynamic level in the process. Moreover, the bears may regain momentum if the price can have a daily bearish candle close below the Bollinger Bands' upper band in the days ahead.
To conclude, after an impulsive bullish momentum, the price requires a downward retracement. A daily close will help to identify the definite momentum in the coming days.