The US dollar maintains a bearish outlook, which continues to create a tailwind in the GBPUSD market. Currently, the market is trading above a previous resistance level of 1.3262. Additionally, it appears that price activity may gain more upward momentum on the fundamental front.
Key Price Levels:
Resistance Levels: 1.3400, 1.3450, 1.3500Support Levels: 1.3200, 1.3150, 1.3100
GBPUSD Bulls Are Furious
The persistent US dollar weakness has continued to fuel upside corrections in the GBPUSD market. The market broke the resistance at the 1.3262 price level during the past two sessions. As a result, the subsequent two sessions have continued to trade above the 1.3262 threshold, with the market now tending toward the 1.3400 threshold.
The uppermost limit of the Bollinger Bands (BB) continues to give way to the persistent bulls as they push against the upper limit of the BB indicator. In addition, the Stochastic Relative Strength Index (Stochastic RSI) lines are high in the overbought region, with the leading lines of the indicator now preparing to drag at the 100 threshold.
GBPUSD Market Prepares to Hit the 1.3400 Threshold
The GBPUSD 4-hour chart continues to trend upwards without a hint of rejection. Additionally, price action has stayed away from pushing against the uppermost limit of the BB indicator. Consequently, this erases short-term anticipation of a downward retracement.
Even the BB indicator itself can be seen trending upward, indicating the prevailing trend in the market. The Stochastic RSI indicator lines have just delivered an upward crossover at the 50 mark of the indicator. Moreover, the behavior of the leading line of the indicator suggests that volatility is still healthy and may propel the market further upwards through the 1.3400 threshold.
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