Bulls have been active in the GBPUSD market as the price surged through multi-month resistance levels. The pair broke through the 1.3000 price level four sessions ago and continued further upwards. However, the new week has brought some intrigue as investors anticipate the Fed’s inflation gauge (PCE).
Key Price Levels:
Resistance Levels: 1.3200, 1.3400, 1.3600
Support Levels: 1.3000, 1.2800, 1.2600
GBPUSD Hits the Brakes at 1.3200 Price Level
As noted earlier, the GBPUSD has been breaking through resistance levels recently. However, the ongoing session suggests that upward momentum may pause at this point. This is largely due to the market’s focus on the upcoming US PCE for further direction.
The last price candle has shown a downward retracement but remains close to the uppermost limit of the Bollinger Bands (BB) indicator. The Stochastic Relative Strength Index (Stochastic RSI) indicator line has deflected slightly off the 100 level after moving sideways at that level for a while.
GBPUSD Still Has Bullish Potential
The observed downward retracement in the GBPUSD market is more clearly expressed on the 4-hour chart. Here, the market is seen retreating toward the technical price level 1.3200. Meanwhile, the last price candle presents a more prominent downward retracement. Yet, the BB indicator maintains its overall upward direction, with trading continuing above the middle limit of the BB indicator.
Meanwhile, the Stochastic RSI lines are also seen falling sharply through the 60 mark of the indicator. If the cautious market mood persists, we may see the market retreat to 1.3150. However, stronger movements could occur following the release of the PCE and other relevant economic data.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply