FxNews—The British pound traded bullishly against the U.S. dollar and tested the 100-period simple moving average in today’s trading session. As a result, the British pound bounced from the 1.314 support, trading above the 100 SMA at approximately 1.321 as of this writing.
The GBP/USD 4-hour chart below demonstrates the price, support, resistance levels, and technical indicators used in today’s analysis.
GBPUSD Technical Analysis – 18-September-2024
Zooming into the 1-hour chart, the pair crossed above the Supertrend indicators, signaling a new bullish wave.
Furthermore, the recent bars of the Awesome oscillator histogram turned green in the 4-hour chart, indicating bull market strengths. On the contrary, the Stochastic oscillator declines, but the relative strength index value is 61 and rising, giving mixed signals.
Overall, the technical indicators suggest the primary trend is bullish, and the GBP/USD price will likely extend to higher resistance levels.
GBP/USD Forecast – 18-September-2024
The immediate resistance rests at 1.323, the September 17 high. If the GBP/USD price crosses above 1.323, the uptrend can potentially target 1.326 (the August 2024 high). If this scenario unfolds, the next bullish target will be 1.326.
Furthermore, if the buying pressure pulls the price above 1.326, the following key resistance level will be the January 2022 low at 1.336. Please note that the bullish scenario should be invalidated if the market dips below 1.314.
- Also read: USD/DKK Forecast – 18-September-2024
GBPUSD Bearish Scenario – 18-September-2024
Immediate support lies at the 100-period simple moving average, the 1.314 support. If the bears push the price below 1.314, a new downtrend will likely be triggered, targeting 1.304 followed by 1.30, the September 11 low.
GBPUSD 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 / 1.304 / 1.30 / 1.294
- Resistance: 1.323 / 1.326 / 1.336