GBP/USD Approaching to 1.40 Resistance Level- What’s Next?
April 29, 2021|The Forex Secret – GBP/USD represents the most valuable currency pair based on the geographical position. The UK is considered as the Forex traders where the US is the most dominated country in the world. Therefore, when we talk about the GBP/USD we are representing two influential countries.
What do we expect from the GBP us day as the prices below 1.40 level? Can it push lower? Let’s see the price direction from the Forex Secret technical analysis!
GBP/USD Technical Analysis- 1.40 Eyed
GBP/USD is moving higher as the price is supported by the dynamic level of 20 EMA that carried the price upside.
However, the price becomes very volatile before approaching the 1.40 psychological level, which is also an important resistance level.
Therefore, as long as the price is volatile and below this level, we may expect a rebound towards the downside after a strong rejection.
In the daily chart, we can see that the price is moving higher by having support from dynamic levels with a daily close above the 1.39 level.
In the price condition, investors should wait for the price to approach the 1.40 level and wait for a bearish daily close below it.
Conversely, a strong bullish daily close above the 1.40 level may alter the current market structure that may take the price towards the 1.4163 level in the coming day.
As of the above discussion, GBP/USD has a higher possibility to show some bearish pressure from the 1.40 level.
In that case, the primary target for the price would be towards the 1.38 level.