GBP/USD Bulls are Losing Momentum at 1.4200 Level
May 26, 2021|The Forex Secret – GBP/USD is one of the major currency pairs that has shown a lot of volatility since 2016 due to the Brexit issue. Moreover, this currency pair became famous among investors as soon as the vaccination success peaked in the UK while the US struggled to cope up with the inflation fear.
Based on this uncertainty, GBP/USD started to show extreme volatility at a resistance level, which may attract sellers. Can GBP/USD push lower? Let’s have a look in detail from The Forex Secret Technical Analysis:
GBP/USD Daily Chart is Volatile
GBP/USD showed a long bull run, where the price peaked at 1.4236 level since the beginning of March 2021. Later on, the price pushed lower and resumed the bullish momentum but failed.
In the above image, we can see extreme volatility at the 1.4200 level, which is a sign that bulls are struggling to take the price higher. Although the price is trading above the dynamic 20 EMA, any bearish sign with a daily close below the 1.4150 level may increase the bearish possibility to the price.
On the other hand, if the price moves above the 1.4200 level with a daily close, it may continue the bullish pressure.
GBP/USD H4 Remain Corrective
In the H4 chart, the price is corrective and trading within the channel between 1.4200 to 1.4100. Therefore, as long as the price is extending its volatility, any strong break below the recent low will increase the bearish possibility to the price.
The above image shows the H4 chart of GBP/USD, where any break below the 1.4100 level with a strong H4 close may initiate the bearish pressure to the price, where the ultimate target would be towards 1.4000 and 1.3678 level.
Based on the price action of the GBP/USD, sellers may regain momentum as long as the price is trading below the 1.4200 level with a daily close. Any bullish D1 close above the 1.4200 may alter the current market structure that may take the price higher above the 1.4230.