FxNews—The British Pound started a fresh bullish wave from $1.3, and as of this writing, the GBP/USD pair closed above the $1.3175 resistance, stabilizing above the broken trendline.
The 4-hour chart below demonstrates the GBP/USD price, support and resistance levels, and the technical indicators utilized in today’s analysis.
GBPUSD Technical Analysis – 16-September-2024
The robust buying pressure caused the Stochastic oscillator to become overbought in the 4-hour chart. Additionally, the RSI (14) shows 70 in the description, about to step into overbought territory.
This development in the momentum indicators suggests the British Pound is overpriced against the U.S. Dollar, and the uptrend will likely cool down soon. On the other hand, the Awesome oscillator bars are green, above the signal line, and rising. This means the bull market prevails.
Overall, the technical indicators suggest the GBP/USD pair is in a bull market, but a mild consolidation phase could be on the horizon.
GBPUSD Forecast
As of this writing, the currency pair in discussion trades above the 100-period simple moving average, meaning the primary trend is bullish. However, the momentum indicators signal overbought. Hence, it is not advisable to join the bull market when it is saturated with buyers.
The immediate support to the current uptrend lies at $1.314, neighboring the 100-period SMA. This price point offers a decent bid to join the bull market. Please note that the bull market remains valid if the GBP/USD price exceeds the critical resistance level of $1.311.
If this scenario unfolds, the next bullish target will likely be the August 2024 high at $1.326.
GBPUSD Bearish Scenario
A bearish wave could be triggered if the sellers push the GBP/USD price below the $1.311 support. In this scenario, the decline can result in the pair retesting the September 10 low at $1.304, followed by $1.30.
GBP/USD Support and Resistance Levels
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $1.314 / $1.311 / $1.304 / $1.30
- Resistance: $1.323 / $1.326