GBPUSD Continues to Hug the 20-Day EMA Line

As trading activities for the new week unfold, price activity in the GBPUSD market continues its consolidatory move. This seems to have started in the previous week but has extended into the new week. However, it appears that economic data and policies expected to emerge in the new week will soon change the current sentiment in this market.

Key Price Levels:
Resistance Levels: 1.2900, 1.3000, and 1.3100
Support Levels: 1.2800, 1.2700, and 1.2600

GBPUSD Contracts Upward

Today’s trading activities in the GBPUSD market remain bearish, indicated by the appearance of the corresponding price candle on the daily chart. However, something positive can be noticed: it contracted upwards toward the 20-day Exponential Moving Average line. This happened while the session occurred above the 50-, 100-, and 200-day EMA lines.

Meanwhile, the Stochastic Relative Strength Index (SRSI) lines can still be seen depressed deep in the oversold region. Be that as it may, price movement in today’s session has kept the market dwelling more around the 20-day EMA curve.

The Nature of GBPUSD Upside Contraction Portrayed Clearly

The nature of the upside contraction in the GBPUSD 4-hour market can be seen more clearly. Here, it is revealed that the contraction has its root in the past four hours, and the ongoing session seems to have extended that move. However, the last price candle can be seen placing the pair’s price past the 20-day EMA curve.

Meanwhile, the 100- and 50-EMA lines cross above recent sessions. Simultaneously, the SRSI lines have just delivered a bullish crossover around the 30 level of the indicator. As a result, this places the market under pressure, suggesting that prices may decline. Nevertheless, traders may look to fundamentals such as the US CB Consumer Confidence and JOLTS Job Openings, and the BoE quarterly bulletin for guidance towards the 1.2900 mark. Otherwise, prices may fall toward the technical support at the 1.2800 mark.

Do you want to take your trading to the next level? Join the best platform for that here.