GBPUSD Price Analysis – May 3
In case the Bulls maintain or increase their momentum, GBPUSD may have its target at $1.32 level provided $1.31 level does not hold. Should the Bears defend the $1.31 level, the price may fall back to the previous low at $1.28 level.
Supply levels: $1.31, $1.32, $1.33
Demand levels: $1.29, $1.28, $1.27
GBPUSD Long-term trend: Bearish
On the long-term outlook, GBPUSD is bearish. The Bulls defended the demand level of $1.28 as predicted last week; the GBPUSD price reversed and faces the north. A strong bullish candle emerged that broke up the $1.29 former supply level. The bullish momentum extended towards the supply level of $1.31. The pullback was observed on April 2. Today a daily bullish candle is coming up to indicate that the Bulls are still in control of the GBPUSD market.
The currency pair has penetrated the 21 periods EMA and the 50 periods EMA and places the price on the two EMAs. However, the 21 period EMA is yet to cross over the 50 periods EMA as a confirmation for an uptrend. The Relative Strength Index is above 50 levels with the signal lines turning up to indicate a buy signal. In case the Bulls maintain or increase their momentum, GBPUSD may have its target at $1.32 level provided $1.31 level does not hold. Should the Bears defend the $1.31 level, the price may fall back to the previous low at $1.28 level.
GBPUSD Medium-term Trend: Bullish
On the medium-term outlook, GBPUSD is bullish. The currency pair has broken up the $1.29 former supply level, the two EMAs and the drawn trend line; all these are the evidence of bullish movement on the 4-hour chart in the GBPUSD market.
The currency pair is trading above the 21 periods EMA and 50 periods EMA, with the 21 EMAs above 50 periods EMA. The Relative Strength Index period 14 is at 60 levels with the signal line bending down indicates sell signal and that may be a pullback.
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