The weakness in the US dollar appears to have strengthened today, resulting in a significant surge in GBPUSD. However, bears have also made a comeback, causing some downward corrections; nonetheless, the bulls are leading.
Major Price Levels:
Resistance Levels: 1.2214, 1.2300, and 1.2400
Support Levels: 1.2200, 1.2150, and 1.2100
GBPUSD Buyers Are Still Contending with Downward Forces
In the GBPUSD daily market, the further weakening of the US dollar has led to a more reasonable gain today. This has helped recover some of the losses observed in the past two sessions. However, the presence of an upper shadow indicates that some of the earlier gains have been lost due to downward pressure.
Despite this, the overall price position suggests that downward price action remains biased to the upside. This is because the current price of the pair is above the MA line. Furthermore, the Relative Strength Index (RSI) indicator recently produced a bullish crossover, reinforcing the potential for more upside movement.
Price Action in the GBPUSD Market Targets the 1.2300 Price Mark
Although the current session in the GBPUSD 4-hour market has experienced a significant contraction, as indicated by the size of the upper shadow on the last price candle, it remains above the MA line.
Additionally, despite the magnitude of the downward correction, the Moving Average Convergence Divergence (MACD) indicator lines continue to rise smoothly below the equilibrium level. Moreover, the increasing height of the bars of the MACD indicator above the equilibrium level strongly signals that upside forces remain viable and are likely to drive price action toward the 1.2300 mark.
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