The Pound Sterling Is Propelled To Capture Lower Grounds

by at FXTM.
Tran Dai Phat
Tran Dai Phat

The Pound on the 4-Hour Chart has been in a downtrend since 30 July 2021 when it registered the high price at 1.39823, followed by a series of lower tops and lower bottoms.

On 19 August 2021, the Pound recorded the low price of 1.37096.

Technical Analysis

When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the Pound Sterling’s downward direction.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.

Additionally, the Relative Strength Index (RSI) Oscillator registers values in the oversold zone after an increase in sales and excess of net decline.

All three technical indicators are in agreement with regards to the downward bias of the pair.

Price Targets

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 1.36816 (161.8%).
  • The second price target is seen at 1.36173 (261.8%).
  • The third price target is projected at 1.35132 (423.6%).

Pound Sterling is currently trading below the downtrend line. Its current price is 1.12% below last week’s close after a sharp decline in price during a period of heavy selling.

Of course, supply and demand as well as the crowd sentiment will determine the future course of Pound Sterling.

GBPUSD H4 Aug19 2021

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