Although the US PMI failed to deliver bullish momentum to the US dollar, the USD rebounded and has capped the GBPUSD on its upside track. While the Pound still awaits the BRC Shop Price Index, let’s try to see what may evolve from this market.
Key Price Levels:
Resistance Levels: 1.2700, 1.2800, and 1.2900
Support Levels: 1.2600, 1.2500, and 1.2400
GBPUSD Faces Strong Rejection Near the 1.2700 Threshold
Price movement in the GBPUSD market today has seen a strong rejection as soon as the market approaches the 1.2700 threshold. This rejection has emanated from the strong rebound of the US dollar, causing bulls to yield their gains and plunging the market back below the 20, 50, and 100-day Exponential Moving Averages (EMA).
Meanwhile, the 20- and 50-day EMA lines can be seen converging above the session. However, the Stochastic Relative Strength Index (SRSI) still maintains its upside trajectory due to the previously recorded gains in the market.
The GBPUSD Market May Proceed Further Downwards
Price activity in the GBPUSD 4-hour market can be seen falling below all the EMA lines, in contrast to the daily market, where recent price candles stand above at least the 200-day EMA curve. The current session has placed the pair below all the EMA lines, thereby conferring a strong bearish tone on the market.
Additionally, the SRSI indicator lines have turned sharply south. The leading line of the indicator is already at the 50 mark, while the lagging line follows. The signs from technical indicators suggest that the market is proceeding downward very quickly. Therefore, traders can brace for impact at the 1.2600 mark shortly, and perhaps lower afterwards.
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