The currency pair is still experiencing bearish pressure and the price is moving down, making an attempt to penetrate the $1.2547 level. In case the Bears successfully break down the level, the GBPUSD may reach $1.2397 level. Should the Bulls defend $1.2547 level, the price may reverse.
GBPUSD Market July 04
Supply levels: $1.26, $1.28, $1.29
Demand levels: $1.25, $1.23, $1.22
GBPUSD Long-term trend: Bearish
On the long-term outlook, GBPUSD is Bearish. On June 25, the increase in GBPUSD price was resisted at the dynamic resistant level of 50 periods EMA. This is noticed on the daily chart with the formation of an evening star candle pattern. The price consolidated for three days at $1.26 level after which a strong bearish candle emerged on July 01 which broke down the $1.2690 level and the price declined to $1.25 demand level. The price may eventually form a double bottom candle pattern at the mentioned level.
The currency pair is still experiencing bearish pressure and the price is moving down, making an attempt to penetrate the $1.25 level. In case the Bears successfully break down the level, the GBPUSD may reach $1.23 level. Should the Bulls defend $1.25 level, the price may reverse. GBPUSD is trading below 21 periods EMA and 50 periods EMA at a farther distance to each other. The stochastic Oscillator period 14 is above 25 levels with the signal lines point down to indicate strong sell signaling.
GBPUSD Medium-term Trend: Bearish
On the medium-term outlook, GBPUSD is Bearish. On 4-hour chat, the currency pair started consolidating on June 25 at $1.2690. The Bears gained more pressure and the strong bearish candle was produced which broke down the $1.26 price level. The price decreased further towards $1.25 level. As at the moment, GBPUSD is consolidating around $1.25 level.
GBPUSD is trading below the 21 periods EMA and 50 periods EMA and the two EMAs are well separated from each other which indicates a bearish trend.
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