The US dollar has maintained its bullish stance. As a result, the GBPUSD market has remained under the activity of headwinds. This seems like the aftermath of the BoE’s taking a dovish stance since inflation appears to be under control. Meanwhile, the Federal Reserve policymakers are hinting that there may be no further rate cuts in December. This and more have constituted a headwind in this market.
Key Price Levels:
Resistance Levels: 1.2900, 1.3000, 1.3100
Support Levels: 1.2800, 1.2700, 1.2600
GBPUSD Falls Toward the 200-day MA
The last price candle on the GBPUSD chart shows that buyers and bears are still in the lead. This has plunged the market lower toward the 200-day Moving Average (MA) curve as a support. Also, it represents the third consecutive session in which the market has been falling toward lower price levels. Most of the MA lines stayed above the price activity.
Additionally, the Stochastic Relative Strength Index (RSI) lines have continued to resume falling toward the overbought region. The behavior of the Stochastic RSI has revealed that price action had attempted a bullish crossover but failed to affect it. This suggests that downward forces are strongly in control in this market at the moment.
Bears Continue to Run Riots in the GBPUSD Market
Extending this GBPUSD price analysis to a 4-hour market, it could be seen that price action has continued on the downward path. The ongoing session seems to point out that bears are even gaining momentum. In this market timeframe, price action has fallen below all the MA lines. Furthermore, the Stochastic RSI lines have fallen deep into the oversold region. Also, the lines are merged and are now trending sideways at the 1.48 mark of the indicator.
Consequently, it does seem logical for traders to anticipate that the market may hit the 1.2700 price level. However, traders should stay abreast of all the relevant fundamentals, such as the BoE’s speech and ILO employment data and employment changes, that are likely to shape the market’s direction.
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