The GBPUSD pair continues to capitalize on the persistent weakness of the US dollar, as the fundamentals from the previous week failed to boost the currency. The pair has initiated this week’s trading with moderate profits, and a closer look will provide insights into the potential developments in this market.
Key Price Levels:
Resistance Levels: 1.2507, 1.2607, and 1.2707
Support Levels: 1.2500, 1.2450, and 1.2400
GBPUSD Breaks Through the 1.2489 Resistance
In today’s trading activities, GBPUSD’s price action surged past the longstanding resistance at 1.2489, which has been in place since September. The price candle representing today’s session found support above this resistance, and it’s noteworthy that the price has not reached the upper limit of the Bollinger Bands.
This suggests the potential absence of an imminent downward correction. Additionally, the Moving Average Convergence Divergence (MACD) indicator lines have consistently trended upward after crossing the equilibrium level. The latest MACD bar is solid green, indicating strengthening price momentum.
Strong Momentum in the GBPUSD Bullish Trend
Examining the GBPUSD 4-hour market reveals that price action has pushed against the upper limit of the Bollinger Bands, a deviation from the daily market scenario. The Bollinger Bands appear narrower compared to previous sessions.
The last trading session has been bullish, with prices surpassing the upper limit of the Bollinger Bands. These observations on the price chart align with the MACD indicator line, delivering a bullish crossover above the equilibrium level. This further suggests the potential for more bullish momentum to unfold, with prices likely to extend beyond the 1.2500 level towards the 1.2650 mark.
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