The GBPUSD Pair has eventually broken through the support level at the 1.2700 price mark. At this point, it can be assumed that price movement may extend the downward correction toward the lower price mark, seeing that headwinds are maintaining a strong stand.
Major Price Levels:
Resistance Levels: 1.2670, 1.2700, and 1.2750
Support Levels: 1.2650, 1.2600, and 1.2550
GBPUSD Looks to the 1.2650 level for Support
As earlier mentioned, trading activities in the GBPUSD market have fallen through a once-held support at the 1.2700 price mark. At this point, this market seems to have passed a stronger bearish signal, as price action continues to descend below the 9- and 21-day Simple Moving Averages (SMA). Likewise, the Stochastic Relative Strength Index indicator curves are already preparing to deliver a bearish crossover in the oversold region. Consequently, this signals that bears are maintaining dominance in this market.
GBPUSD Bears Are Pushing for a Stronger Downward Retracement
In the GBPUSD 4-hour market, it can be seen that bears are maintaining their focus on causing a steeper downward retracement. Trading activities in this market remain below the 9- and 21-day SMA curves. Consequently, this agrees with the bearish tone perceived in the daily market. However, the RSI indicator curves generally have an upward bearing. But a careful look at the leading line of this indicator suggests that the headwind is strengthening in this market. This can be perceived as the leading line of this indicator being bent slightly sideways from its previous upside path. In the meantime, bear traders may gather more profits towards the 1.2640 price mark.
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