An undecided stance concerning the US rate cut in December has had a notable impact on the GBPUSD. This has solidified resistance above price action, causing it to rebound downward. Major setbacks seem to have emanated from the GBP side of the market as the country continues to face inflation challenges.
Key Price Levels:
Resistance Levels: 1.2700, 1.2800, 1.2900
Support Levels: 1.2600, 1.2500, 1.2400
GBPUSD Minimal Gains Stay Subdued
The GBPUSD market has seen a rejection at the 20-day MA line. The market has continued south ever since, pushing further below all the MA lines. Consequently, this has strengthened bearish sentiment, and the pair seems mostly quiet on the fundamental front.
The Stochastic Relative Strength Index (RSI) indicator has delivered a bearish crossover in the overbought region of the indicator. Meanwhile, the last price candle has appeared green and with a tiny body. Likewise, the last position of the price candle hints that downward forces will likely prevail further.
GBPUSD Still Looks Vulnerable
GBPUSD’s Price action is moving almost sideways in a thin line. This technically indicates indecision in the market. This suggests that investors are undecided about the market’s direction. Likewise, price action lies below almost all the MA lines on the chart. Therefore, this suggests that the market will need a significant amount of upside force to lift it higher.
The Stochastic RSI lines are in the oversold region and have delivered a crossover there. The ensuing lines have a sideways trajectory and, as such, hint that downward forces are still favored. This may lead to price action plunging towards the 1.2500 mark in subsequent sessions.
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