The GBPUSD market had previously seen a strong upward rebound that brought the market to test a psychological resistance level. However, the pair is more influenced by fundamental factors. Market participants anticipate the outcome of the ECB policy announcement and the US Jobless Claims, which will provide further impetus to this market.
Key Price Levels:
Resistance Levels: 1.2700, 1.2800, 1.2900
Support Levels: 1.2600, 1.2500, 1.2400
GBPUSD Stands Just Above a Critical Threshold
Price action in the GBPUSD market rebounded strongly upward in the previous session, surpassing the 20-day Moving Average (MA) curves. However, the psychological resistance level above the price action proved to be quite strong, preventing the market from breaking through.
The following session saw a modest downward rebound, keeping the price of the pair just above the 20-day MA line. The Stochastic RSI line has been falling into the oversold region. However, recent price activity has caused it to deflect slightly towards a bullish crossover. A bullish crossover here could potentially drive the market to breach the technical resistance ahead.
GBPUSD Maintains Some Upside Consistency
Price action in the GBPUSD 4-hour market continues to place the price of the pair just above the 20-day MA line, similar to the daily chart. The last price candle is green, indicating a bullish trend, unlike the bearish candle on the daily chart. Furthermore, despite the minimal overall price increase, the Stochastic RSI lines are in the oversold region.
Additionally, the RSI indicator has delivered a bearish crossover in the overbought region. Technically, this suggests that the market may proceed downward in subsequent sessions. However, fundamental factors will play a crucial role in determining the direction of price action in this market. Nevertheless, traders can target the $1.2650 level ahead of the release of impactful economic data later today.
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