Bears in the GBPUSD market maintain a strong influence despite the almost stagnant characteristics of the US stock index. Indications surrounding the market suggest that price activity may even break below a previous support level as the market anticipates more fundamentals from the US side.
Key Price Levels:
Resistance Levels: 1.3100, 1.3300, 1.3500
Support Levels: 1.3000, 1.2900, 1.2800
GBPUSD Stays Vulnerable to Further Price Declines
Price activity in the GBPUSD daily market has fallen significantly below the middle limit of the Bollinger Bands (BB) indicator. Nevertheless, it appears that bearish momentum has cooled, as indicated by the appearance of more recent price candles. The last price candle on the chart reveals that both downward and upward forces are contending for control in the session.
However, at this point, it seems that sellers are predisposed to retaining control of price movement, given the position of price activity below the middle limit of the BB indicator. Also, the Stochastic Relative Strength Index (Stochastic RSI) lines suggest that the market may proceed further downward.
GBPUSD Bears Look Yet Formidable
While the GBPUSD market has only fallen below the middle limit of the BB indicator on the daily chart, it appears that bears are preparing to deliver more thrust. This opinion stems from the characteristics of the BB indicator, which shows that the bands are contracting while price activity remains below the middle limit.
Meanwhile, the Stochastic RSI lines can be seen delivering a crossover in the oversold region. Technically, this aligns with the notion that prices may continue downward. Therefore, traders should brace for potential impacts at the 1.3043 and possibly the 1.3000 price marks.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply