Yesterday’s trading session saw a substantial decline in GBPUSD price action, following a robust resistance on the upward trajectory. While today’s session has shown a slight uptick, bearish traders appear to be proceeding with caution, expecting additional momentum to unfold in both today’s market dynamics and the days ahead.
Key Price Levels:
Resistance Levels: 1.2634, 1.2700, and 1.2800
Support Levels: 1.2600, 1.2500, and 1.2400
Anticipation in the GBPUSD Market Is Putting a Brake on Downward Correction
GBPUSD started the week on a bearish note as the pair dipped towards the middle limit of the Bollinger Bands indicator. The shift occurred due to a surge in momentum within the US dollar market, setting the stage for a week packed with fundamental events.
While the preceding session showed signs of upward corrections, the current session appears to sustain the downward correction trend toward the 1.2600 mark, albeit with a notable decrease in bearish momentum. Additionally, the MACD indicator lines have subtly turned downward after a crossover above the equilibrium level. This indicates a cautious approach among bearish traders as they await economic data scheduled to unfold today and throughout the upcoming week.
Low Volatility Grounds Upside Correction in the GBPUSD Market
In the 4-hour GBPUSD market, a noticeable decrease in volatility is hindering significant corrective moves off the support. Despite bears testing the 1.2600 mark, the subsequent rebound lacks substantial momentum, with the ongoing session only yielding modest gains. Consequently, the pair persists in trading below the mid Bollinger Bands range.
While the Moving Average Convergence Divergence (MACD) indicates a weakening of downward forces, the indicator’s lines persistently traverse beneath the subequilibrium level. Traders are advised to exercise patience and await impactful data before considering the potential for an upside correction towards the $1.2700 mark.
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