GBPUSD Price Analysis – April 08
When the Bears defend the support level of $1.37, the price may reverse and increase towards the $1.38, $1.39 and $1.40 resistance level. In case the bears increase their momentum and break down the support level of $1.37, then, $1.36 and $1.35 levels may be tested.
GBPUSD Market
Key levels:
Resistance levels: $1.38, $1.39, $1.40
Support levels: $1.37, $1.36, $1.35
GBPUSD Long-term trend: Bearish
On the daily chart, GBPUSD is bearish. At the early stage of the market last week, GBPUSD was bullish, trading above the dynamic resistance level. It has equally broke above the resistance level at $1.38. On April 06, the sellers counter the bearish movement with the formation of strong daily bearish candle. The price declined to the previous low at $1.37 price level.
GBPUSD has return below the 9 periods EMA and 21 periods EMA. The two EMAs are well separated with the pair trading below the two EMAs at close contact, which indicate that the bears’ pressure is increasing. The relative strength index period 14 is at 40 levels with the signal lines pointing to the south which indicate increase in bears’ momentum. When the Bears defend the support level of $1.37, the price may reverse and increase towards the $1.38, $1.39 and $1.40 resistance level. In case the bears increase their momentum and break down the support level of $1.37, then, $1.36 and $1.35 levels may be tested.
GBPUSD Medium-term Trend: Bearish
GBPUSD is bearish on the medium-term outlook. The currency pair was on the bullish movement last week on the 4-hour chart. On April 06, a bearish engulfing candle formed and triggered bearish movement towards the support level of $1.37. The currency pair is currently consolidating at $1.37 level.
The price is trading below the 9 periods EMA and the 21 periods EMA. The relative strength index period 14 is at 40 levels bending down which connotes sell signal which may be a pullback.
