The sentiment around the USD hasn’t improved and has less chance of doing so. This has placed the GBPUSD pair at an advantage in continuing its upside retracement. Although the market has only printed minimal losses in the past three sessions, price action may still bounce off nearby support toward higher marks.
Key Price Levels:
Resistance Levels: 1.2650, 1.2700, and 1.2750
Support Levels: 1.2601, 1.2550, and 1.2500
GBPUSD Buyers May Have Regrouped at the Support at the 1.2580 Mark
The GBPUSD recently experienced reduced market movements as volatility thins. With the US dollar currently having a bearish sentiment, the GBPUSD pair has failed to print any significant gains in recent times. However, this seems to have started as soon as price action crossed around the 1.2580 mark.
The applied Bollinger Bands remain dilated, while price activity stays close to the uppermost band of the Bollinger Bands indicator. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator lines are still above the equilibrium level, with their bars appearing pale green. The momentum in this market has weakened considering the observation, yet the pair still has an upside chance.
GBPUSD Lands on a Tough Support
Price action in the GBPUSD market has closed on support at the middle limit of the Bollinger Bands at the 1.2597 mark. Technical indicators such as the MACD maintain that bullish momentum is threatening to break the support at the middle limit of the Bollinger Bands.
This can be seen as lines of the MACD indicator continue to trend downwards from above the equilibrium level of the Bollinger Bands. Likewise, the histogram bars of this indicator still appear solid red while gradually increasing in length towards the negative axis. Nevertheless, the upper and lower limits of the Bollinger Bands indicator are contracting. Consequently, this suggests that should bulls be able to hold the market above the middle limit of the Bollinger Bands, price action may continue upwards and towards the 1.2700 mark shortly.
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