The GBPUSD pair has been able to extend upward movement. This seems largely because the USD lacks lustrous performance as market participants are considering the Fed’s rate outlook. This has allowed the pair to print additional profits ahead of upcoming, market-influencing fundamentals.
Key Price Levels:
Resistance Levels: 1.2600, 1.2700, and 1.2800
Support Levels: 1.2500, 1.2400, and 1.2300
GBPUSD Eyes the 1.2600 Price Level
The week’s trading activity has begun, and the GBPUSD pair has printed moderate profits. However, it can be perceived that the last price candle has retracted from the 1.2600 mark. Nevertheless, the body of the price candle suggests that buyers are still retaining considerable profit.
At this point, the pair still trades above the intersecting lines of the Guppy Multiple Moving Average (GMMA) indicator. This suggests that price movement has an increased chance of still approaching that price level. The Stochastic Relative Strength Index (SRSI) lines maintain an upside trajectory in the overbought region. This also aligns with the prediction that the market may still be heading upward.
Downward Correction of GBPUSD Price Action Dampens Upside Hopes
It was seen above that the GBPUSD market has an upside trajectory. However, while that is true, the 4-hour market is revealing that price movement may be experiencing a rejection. This was also seen on the daily price chart as a downward contraction. The mentioned rejection resulted after price action reached the uppermost limit of the Bollinger Bands. Nevertheless, price action remains above the middle limit of the Bollinger Bands.
Likewise, the Moving Average Convergence Divergence (MACD) indicator lines are now above the equilibrium level. But, the lines can be seen bent sideways, showing that upside movement needs some more push if bullish Forex signals will be usable at this point. Traders might want to monitor the array of Fed’s speeches and the GBP Retail Sales for impetus towards the 1.2630 mark.
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