Most likely due to the uncertainty surrounding the US election, the GBPUSD market has been moving in a choppy manner. The pound has no fundamental boost, revealing that most of the movement in this market may be coming from the US dollar side of the market. This is also largely due to the behavior of investors ahead of the US elections, amongst other economic data.
Key Price Levels:
Resistance Levels: 1.3000, 1.3050, 1.3100
Support Levels: 1.2900, 1.2850, 1.2800
GBPUSD Bullish Rebound Faces Rejection
The GBPUSD market has rebounded off the support at the 1.2900 threshold. However, downward forces introduced a bearish contraction. This brought the market close to the 1.2907 threshold. Be that as it may, the ongoing session rebounded upwards above the previous session.
Nevertheless, the ongoing session currently stands bearish and keeps the price of the pair below the 20- and 100-day Moving Average curves. Meanwhile, the Stochastic Relative Strength Index lines can be seen still poised for a bullish crossover at the threshold of 50 of the indicator. Despite this, traders will do well to seek trend confirmation in this market.
GBPUSD Market May Slip Lower
The GBPUSD 4-hour chart seems to be revealing the possibility of price action falling to lower support levels. Here, it appears that the US dollar is gaining weight. As such, this keeps pulling down the pair. Consequently, the downward rebound off the 100-day MA line can be seen to have fallen below the 50-day MA line.
Also, the Stochastic Relative Strength index lines have also delivered a bearish crossover in the oversold region. The lines of the indicator are falling lower but are all above the 80 threshold. Similarly, the last price candle on the chart can be seen just above the 20-day MA curve. Therefore, traders can wait for price action to fall below the 20-day threshold for impetus towards lower price levels.
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