For a significant length of time price activities in the GBP/USD, the market has stayed above the Moving Average line. However, this market dived when the price action was nearly clinching the 1.2500 price level. It was a steep fall, and as of now, the fall has progressed with minimal strength.
Important price Levels:
Resistance Levels: 1.2200, 1.2230, 12270
Support Levels: 1.2173, 1.2130, 1.2100
GBP/USD Bears Appear to Have Lost Momentum
Following a very steep price fall in the GBP/USD daily market that took out about 80% of the profit gathered from the 1st of December till 16th, price action has slowed down on losses. Currently, price action in the GBP/USD market now lies under the Moving Average curve to portray a downtrend. However, the looks of recently formed price candles reveal that market bears are losing strength. Furthermore, the lines of the used Stochastic RSI indicator are now in the oversold. The faster line of the RSI has reached the lowest level of the oversold and has now turned sideways. Also, the line of the Average True Range (ATR) indicator is pointing slightly downwards toward the 0.01540 level. From these traders can anticipate a reversal soon as buying confidence may bolster soon.
GBP/USD Looks Roughened by Headwind
On the GBP/USD 4-hour chart, the price has largely moved sideways in recent trading sessions. The latest trading sessions have pushed the price to the same price level of 1.2140 as that of the 12th trading session. Consequently, this price level seems to be a strong support. However, the used ATR and RSI indicators look divergent about the hopes of upside price reversal. The ATR is now pointing upwards, to indicate that the current trend is an upside one. Meanwhile the Stochastic RSI indicator portrayed the start of a continuous price reduction, as it has performed a bearish crossover. The activities of technical indicators keep the possible market event a probability. Traders may have to wait to see if the latest 4-hour trading session will break the support 1.2140 or not. If the price action doesn’t break this level bullish confidence may build up, and the price will rise.
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