The US Yield started seeing some improvements towards the close of last week’s trading activity. This placed the GBPUSD pair under significant pressure. However, the tides seem to be changing at the moment as the greenback prints losses despite favorable sentiments surrounding it. GBPUSD has capitalized on this as the pair’s price action corrects toward higher price levels.
Key Price Levels:
Resistance Levels: 1.2800, 1.2900, and 1.3000
Support Levels: 1.2700, 1.2600, and 1.2500
GBPUSD Bulls Stage a Successful Pullback
Price movement in the GBPUSD has witnessed a moderate recovery after the market halted further downward corrections in the past two sessions. The current session has picked an upward path. Consequently, the last price candle on this chart can be seen rising back above the 100-day Exponential Moving Average (EMA) line. The 20-day EMA line has a downward-deflected tip toward lower price levels.
This further makes it easier for price action to rise past it in subsequent sessions. By doing so, this will supply more bullish impetus to traders in the market. The Moving Average Convergence Divergence (MACD) lines have fallen rapidly towards the equilibrium level in the previous session. However, the pale red of the indicator’s last bar suggests that upside forces may gain momentum from here on.
GBPUSD Upside Correction Is Gaining Momentum
Price action in the GBPUSD 4-hour market seems to be acquiring more momentum. The previous session saw the successful halting of further downward corrections. However, the ongoing session has landed with prices leaping upwards towards higher ground. At this point, price action stands above the crossed lines of the 20 and 200-day EMA curves.
The appearance of the session suggests that buyers are still pushing the session upwards. Simultaneously, we can see that the MACD has delivered a bullish crossover below the equilibrium level and is now trending upward. The bars of the indicator are growing steadily, indicating a steady rise in bullish momentum. As a result, traders can still aim for the 1.2750 mark in the meantime and 1.2800 in subsequent sessions.
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