The GBPUSD market has started the week with a continuation of the previous week’s upside movement. However, there are indications which suggests that the market has shed significant profits. Although upside forces still have some fighting chances, let’s take a more critical look at price activity in the market.
Key Price Levels:
Resistance Levels: 1.2900, 1.3000, and 1.3100
Support Levels: 1.2700, 1.2600, and 1.2500
Mixed Nonfarm Payroll Data Suppresses GBP USD’s Bullish Progress
As mentioned earlier, GBPUSD has had a bullish start to the week. However, the upside progress seems to have been tempered by some bullish sentiment surrounding the US dollar. This sentiment has its roots in the Nonfarm Payroll data for the past three months (April, May, and June), with June’s data coming in better than expected.
This has also led investors to weigh the likelihood of a rate cut by the Fed soon. The session has appeared above all the Exponential Moving Average (EMA) curves. Meanwhile, the corresponding price candle can be seen as having a long upper shadow, which shows that downward forces have caused some negative contractions in the market. The Stochastic Relative Strength Index (SRSI) lines are now converging in the overbought region.
GBPUSD Stays Afloat Despite Downward Corrections
The GBPUSD market has recorded a two-session straight price decline. Despite this, the market stays above the EMA curves. Likewise, the SRSI indicator lines can be seen to have delivered a bearish crossover above the 50 level of the indicator. The indicator’s lines have proceeded downward ever since and have fallen below the 50 threshold.
The current session stands just above the 1.2800 threshold. Nevertheless, the market’s momentum suggests that this technical support level will likely be broken. And provided the 20-day EMA line doesn’t offer strong support, the market may approach another psychological support at the 1.2700 mark. However, the ensuing relevant fundamentals will play a key role in this.
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