GBPUSD has continued to trend upwards ever since it broke through psychological support at the 1.2600 mark about six trading sessions ago. Market happenings seem to indicate to traders that the upside correction may continue, despite the considerable rejection seen in the ongoing session.
Key Price Levels:
Resistance Levels: 1.2678, 1.2700, and 1.2800
Support Levels: 1.2600, 1.2500, and 1.2400
GBPUSD Remains on an Upside Path but Seems Limited
The GBPUSD daily market has managed to stay positive in its general outlook. This is mostly due to the persistent weakness of the US dollar. However, the stagnant pound seems to be posing resistance to significant upside progress in this market. From a technical point of view, it can be observed that the last price candle on this chart has a significantly long upper shadow. Nevertheless, the ongoing session remains bullish, primarily due to the dollar weakness.
The recent price candle can be seen hugging the uppermost limit of the Bollinger Bands, while the Moving Average Convergence Divergence (MACD) indicator lines continue to rise upwards. It should be noted that the bars of the MACD have remained of equal length since the previous session, indicating the limiting effect created by downward forces in the market.
GBPUSD Market Stays Positive in the Face of Rejection
The GBPUSD 4-hour market has revealed the nature of the observed rejection in the daily market. It can be seen that while price action approached the resistance at the 1.2700 mark in the previous session, headwinds pushed back against price activity, causing a sharp downward correction in today’s trading session. That downward correction spanned two sessions in this market timeframe. However, the market remains above the middle limit of the Bollinger Bands.
Likewise, it remains above the drawn upside-sloping trendline. Another technical indicator strengthening bullish hopes in this market is the Stochastic Relative Strength Index (RSI) lines. The lines of this indicator maintain an upside bias despite the correction seen. Consequently, this suggests that the uptrend may continue, and Forex signals with targets near the 1.2750 mark may still be considered ahead of contrary impulses.
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