Downward forces in the GBPUSD market have managed to gain moderate momentum due to some key fundamentals. The market anticipates Bailey’s monetary policy testimony to assist the pair in regaining upside focus. However, the slight momentum gain in the USD continues to drive the market lower ahead of any contrary reports.
Key Price Levels:
Resistance Levels: 1.2584, 1.2600, and 1.2790
Support Levels: 1.2500, 1.2400, and 1.2300
GBPUSD Eyes the Support at the 1.2564 Level
The GBPUSD price action has turned south in the daily market since the previous session. The ongoing session has continued on the same path as the price, however, with much lower momentum. Nevertheless, the pair now trades clearly below the Guppy Multiple Moving Average (GMMA) curve.
Similarly, the Moving Average Convergence Divergence (MACD) indicator lines are below the centerline, while its lines have continued to move sideways together due to weak bearish momentum. The bars on the MACD have appeared below the equilibrium level and are, of course, red.
GBPUSD Bears Retain Control
In the GBPUSD 4-hour market, it can be seen that since the past three trading sessions, prices have continued to descend slightly downward. The ongoing session seems to have experienced strong rejection, considering the appearance of the last price candle here. Similarly to what could be seen on the daily market, trading activity remains below the GMMA lines.
Likewise, the MACD indicator lines have continued to descend below the centerline of the indicator. The bars of this indicator can also be seen appearing solid red below the equilibrium level. Consequently, this suggests that bearish forex signals can still be of use in this market, as trading activity may approach the 1.2550 mark.
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