Price activity in the GBPUSD market continues to respond to geopolitical developments. The US dollar was impacted by reports of tension between Israel and Iran, following Israel’s alleged attack on Iranian oil facilities. However, the response eased as further reports revealed that oil facilities were unaffected. This may be notable, as the economic calendar may not offer significant cues in the short term.
Key Price Levels:
Resistance Levels: 1.3000, 1.3100, 1.3200
Support Levels: 1.2900, 1.2800, 1.2700
GBPUSD Keeps Retreating Below the 1.3000 Threshold
The GBPUSD market rebounded off the support level at 1.2907 towards the close of trading activity in the previous week. The new week has attempted to extend the retracement but seems to face downward pressure due to ongoing geopolitical developments. This has caused a contraction in today’s trading, as represented by the corresponding price candle.
The 20-day and 50-day Moving Average (MA) curves have crossed above price action. Meanwhile, the Stochastic Relative Strength Index (Stochastic RSI) lines can be seen rising sharply past the 50 mark. At the same time, the last price candle on the chart remains green, keeping the pair above the 100-day and 200-day MA curves, which technically hints that the market may proceed upward.
The GBPUSD Market Rebounds Off the 50-Day MA.
The daily GBPUSD market shows that price action has retreated below the 1.3000 threshold but still retains some upside potential. However, the 4-hour chart suggests that downward forces are restricting upward progress, as price action appears to be recoiling off the 50-day MA line. Recent price movement has shown higher highs off the 1.2907 support.
The observed downward retracement of the 50-day MA curve is reflected in the Stochastic RSI, causing it to begin converging at the 80 mark of the indicator. Considering the lack of momentum from the economic calendar, traders can look to relevant geopolitical events for market direction. Albeit, traders may maintain bullish positions towards the 1.3020 price level for short-term gains.
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