GBPUSD bulls have regained momentum after bouncing from 1.3750 to 1.3770 support level. GBPUSD surged above 1.3850 psychological resistance level. Will the price continue 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.
July 12, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3885 area and trying to retrace downside. After an extended period of volatility below 1.3850 to 1.3840 resistance area, the bulls found support around 1.3750 to 1.3770 area and strikes higher quite impulsively. However, the bulls failed to break over 1.3900 to 1.3910 area and had a daily close below it. As per the current price action context, the price may retrace downside towards the dynamic level on the intraday chart in the coming days.
GBPUSD Surged Above as the Bulls Are Still Residing On the Market
GBPUSD is currently residing near 1.3885 area and trying to push downward. However, the price also faced resistance at the dynamic level of 20 EMA on the daily chart.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD surged above and currently trading around 1.3885 area. As per the current scenario, the price may retrace downside towards 1.3850 to 1.3840 support area in the process. So, if the price retraced towards 1.3850 to 1.3840 area and bounced upside with an impulsive bullish candle, the bulls may regain momentum and push the price higher towards 1.3900 to 1.3910 area as a first target. The second target will be 1.3980 to 1.4000 area if the price can break above 1.3900 to 1.3910 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that the bears may regain momentum for a while in the days ahead.
GBPUSD Is Still Indecisive
According to the daily chart, GBPUSD surged above, but the dynamic level is still holding the price as strong resistance. As per the current price action, if the price can break above 1.3900 to 1.3910 area with an impulsive daily bullish candle, the price may recover higher towards 1.3980 to 1.4000 area in the coming days. On the contrary, if the price pushes lower and breaks below 1.3850 to 1.3840 area with an impulsive bearish candle, the bears may push the price down towards 1.3770 to 1.3750 area in the process.
Image: GBPUSD Daily Chart
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 work as strong resistance to push the price downside. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the bulls may regain momentum if the price can break above the dynamic level in the days ahead.
To conclude, as long as the price residing below the dynamic level on the daily chart, the bias will remain bearish. An impulsive daily breakout is needed to identify the definite momentum in the coming days.