While the GBPUSD market has continued to oscillate within a fairly wide price range, traders are still holding onto most of the gains recorded off the support near the 1.2520 mark. It appears that the release of the United Kingdom unemployment data has supported the pair in achieving this. Nevertheless, let’s delve deeper into the market.
Key Price Levels:
Resistance Levels: 1.2620, 1.2700, and 1.2800
Support Levels: 1.2610, 1.2560, and 1.2500
GBPUSD May Descend Lower as USD May Gain Momentum From OPEC Report
Price action in the GBPUSD market earlier experienced an upside rebound, leading the market to rise back above the 1.2600 mark after bouncing off a support level near the 1.2540 price level. However, the ongoing session has witnessed some minor downward correction as the market now turns towards a once-broken resistance at the 1.2564 mark.
Technical indicators suggest a possible revisit of the mentioned support, as all the Guppy Multiple Moving Average lines are above the corresponding price candle for the ongoing session. Additionally, the Stochastic Relative Strength Index (SRSI) has displayed a bearish crossover near the 60 mark of the indicator, suggesting traders lean towards bearish forex signals ahead of the OPEC report.
GBPUSD Weakly Resists Further Downward Correction
Price activity in the GBPUSD 4-hour market suggests that upside market forces are attempting to resist further downward corrections. However, this resistance appears weak at this point, as the corresponding price candle has just appeared as a dash-shaped candle. On the contrary, the SRSI indicator lines have delivered another crossover in the oversold region.
While the upside crossover seemed premature following the previous bearish one, it appears more likely that the market will proceed generally downward as the US CPI may create further headwinds for the pair. Therefore, traders can anticipate price action retracing towards the support at the 1.2500 mark.
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