The GBPUSD market seems to be showing the hope of an upside recovery from a technical point of view. Signs emanating from technical indicators suggest that the market may retrace to higher levels. However, the dollar may grow even stronger, thereby presenting more profit opportunities to bear traders as the market anticipates the United States GDP and PCE. While the pound seems a bit silent, let’s see how things may proceed.
Key Price Levels:
Resistance Levels: 1.2350, 1.2450, and 1.2550
Support Levels: 1.2300, 1.2250, and 1.2200
GBPUSD Found a Breathing Space
The behavior of the GBPUSD market suggests that market forces are engaged in a strong tussle. The price candle representing the ongoing session can be seen to have contracted. This seems largely due to the activities of market participants. The appearance of upper and lower shadows confirms the activities of buyers and sellers as they weigh fundamentals.
The ongoing session is taking place below the Guppy Multiple Moving Average (GMMA) curve. Meanwhile, the Stochastic Relative Strength Index curves are approaching a crossover. This shows that the upside forces may gain the upper hand in the struggle, making bullish Forex signals useful in this market.
GBPUSD Rebound May Strengthen
The recent rally in the US dollar has printed significant losses for the GBPUSD market. Following the price dip in the past two sessions, price action has rebounded off the 1.2300 support in the previous session. The subsequent session has continued minimally in the ongoing sessions. Nevertheless, the market consistently remains below the GMMA line.
Also, the SRSI indicator lines are still oriented towards the oversold region. Meanwhile, convergence seen on the SRSI indicator lines on the daily chart has stayed on in the 4-hour market. This shows that the market may rebound further upwards towards the 1.2400 mark. Nevertheless, traders should monitor the US GDP and PCE as they may provide influential impetus in this market.
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