The momentum of the US dollar notably slowed down during the past week. Consequently, this slowdown has benefited GBPUSD, resulting in profits, which became more evident today as price action managed to breach a significant resistance level.
Key Price Levels:
Resistance Levels: 1.2246, 1.2300, and 1.2350
Support Levels: 1.2200, 1.2250, and 1.2200
GBPUSD Maintains Trade Beyond the 1.2100 Price Range
Price action in the daily GBPUSD market continues to trade above the 1.2100 price level and has even successfully broken through a noteworthy mark. As a result, trading activities in the GBPUSD market occur above the 21-day Moving Average (MA) line. It’s worth noting that in a similar situation in the past when price action behaved similarly, it tested the 1.2300 mark.
Today’s trading has notably imparted strong bullish momentum to this market. The Relative Strength Index (RSI) indicator lines indicate the potential for the pair to gain further traction. The RSI lines are smoothly rising upward from below the 50 mark of the indicator, suggesting that momentum may continue to strengthen at this point.
GBPUSD Surges After Sustained Trade Above the MA Line
On the 4-hour GBPUSD market, trading activities have remained above the MA line for an extended period. However, this sustained behavior did not lead to significant bullish implications.
Nevertheless, the previous session altered this narrative, and the ongoing session provides further evidence that prices may continue to rise. Additionally, the RSI lines are steadily climbing upward, with the leading line now touching the 100 mark of the indicator. This suggests that prices are likely to advance toward the 1.2300 mark. However, traders should remain vigilant about upcoming fundamental events later this week.
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