GBP/USD bears are trying to take the price down where there was a bearish daily close after the Easter Holidays. Therefore, as the price failed to break above the 1.3917 event level, we may expect some bearish pressure this week.
April 07, 2021|The Forex Secret – GBP/USD is one of the top traded major currency pairs in the world that faces most of the intraday activity. This week is almost muted for the GBP in terms of economic releases while USD has a higher possibility to get the benefit from it. However, we should see how the FOMC meeting minutes come to see the exact output of the market.
GBP/USD Market Context Update
GBPUSD is trading within a long-term bullish trend in the Daily chart where the recent bearish daily close below the 1.3917 with a bearish two-bar pattern indicated an upcoming bearish pressure in the price.
Here we can see the daily chart of the GBPUSD where the price managed to have a bearish daily close and made a low. Moreover, the bearish daily candle is backed by a recent bearish trend that started from 1.40 to 1.3668.
Therefore, investors should find sell formation as long as the price is trading within the bearish candle of the two bar rejection. Otherwise, a bullish daily close above 1.3917 is required to make the current setup invalid.
GBPUSD Intraday Sell Setup
In the intraday H1 timeframe, the price is trading below the dynamic level of 20 EMA, and currency facing resistance from the dynamic 20 EMA, indicating a bearish pressure in the price.
Based on the Ichimoku Kinko Hyo the price is trading below the Kumo Cloud, pointing out that the overall market sentiment is bearish.
Moreover, the future cloud is still bearish, indicating further bearish pressure while the Tenkan sen is below the Kijun Sen.
Currently, the price is facing a minor resistance from the Kijun Sen and any sign of the bullish rejection would be a potential sell entry while the primary target would be the near term low of 1.3722.
On the other hand, if the price moves higher and makes an hourly close above the Kumo Cloud investors should wait for a daily close for a clear direction.
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