The GBPUSD market has been retracing lower price levels in the recent past. As a result, price action has retreated below some important technical landmarks. This is happening when the US dollar hasn’t been very strong; however, this may be due to a comparatively weaker stance of the pound. Another contributing factor to this is the holiday mood.
Key Price Levels:
Resistance Levels: 1.2600, 1.2700, 1.2800
Support Levels: 1.2500, 1.2400, 1.2300
GBPUSD Sits at the 1.2500 Baseline
The GBPUSD market seems really depressed as the ongoing session produced a strong downward retracement. The mentioned downward retracement brought the token to now test the support level at the 1.2510 price mark. Also, the pair now trades below all the Moving Average (MA) lines.
Meanwhile, the Stochastic Relative Strength Index lines converge in the overbought region of the indicator. The terminal of the indicator lens seems to be coming together for a crossover at the 17 threshold level. The approaching crossover suggests that price action may rebound upwards off the support level at the 1.2510 mark.
GBPUSD Bearish Momentum Cools as Price Action Nears the 1.2510 Level
In the 4-hour GBPUSD market, it could be seen that price action is witnessing reduced bearish momentum. The corresponding price candle to the ongoing session has appeared red but has a smaller body than that of the previous session.
The Stochastic RSI indicator lines have a trajectory that suggests that downward forces are likely to maintain the lead. Therefore, this hints that the market may attempt a fall through the 1.2500-floor level even as the holidays approach. This seems largely because the pound seems a bit quiet on the fundamental front.
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