Price action in the GBPUSD market was shaken off its upside course as US dollar risk sentiment experienced a negative shift. This gave the US dollar a fighting chance against its counterpart across the market. What can be expected from this market as it remains above a support level of 1.2800?
Key Price Levels:
Resistance Levels: 1.2850, 1.2900, and 1.2950
Support Levels: 1.2800, 1.2750, and 1.2700
GBPUSD Plunges Toward the 1.2800 Support
As earlier noted, the GBPUSD market has had a moderate downward correction. This seems to have stemmed from the moderate USD rebound, while sterling stayed stable based on fundamentals. Be that as it may, the pair stands above the 1.2800 mark by a hair’s breadth.
Also, trading activity stays above the middle limit of the Bollinger Bands. While the Moving Average Convergence Divergence indicator lines are still rising above the center line, the last bar of the indicator is now pale green. This stresses the timing of the downward rebound in this market.
GBPUSD Upside Forces May Have Only Staged A Weak Resistance
While price action in the GBPUSD market has taken a smooth downturn, it appears that upside forces are trying to stage resistance to further price declines. However, the size of the corresponding price candle seems to suggest that the staged resistance may be too weak to halt the fall at this point.
The MACD indicator lines recently delivered a bearish crossover above the equilibrium level. Likewise, the bars of the indicator are now solid red in appearance, which shows that downward forces may be strong at this point. Nevertheless, the market continues to trade above the middle limit of the Bollinger Bands, which offers some hope for bulls in this market. However, unless the pound is aided by some fundamental support, the market may breach the 1.2800 mark towards the 1.2750 mark. Consequently, this makes bearish Forex signals usable at this point.
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