GBPUSD Price Analysis – May 10
Further increase in bear’s pressure may penetrate the $1.29 demand level and target $1.28 demand level. In case the demand level of $1.29 holds, the price may bounce and target $1.31 level.
Supply levels: $1.31, $1.32, $1.33
Demand levels: $1.29, $1.28, $1.27
GBPUSD Long-term trend: Bearish
GBPUSD is bearish on the long-term outlook. On May 03, the Bulls pushed the currency pair up with the formation of strong bullish candle that broke up the $1.31 and the price increased towards $1.32 level. The price could not reach the $0.32 level before the Bears interrupted. The Bears opposed an increase in price with the formation of strong bearish candles that pushed the price down to the demand level of $1.29.
The bearish pressure has pushed the currency pair to break down the 21 periods EMA and the 50 periods EMA and the currency pair is trading below the two EMAs. The 21 periods EMA is already placed below the 50 periods EMA as a sign of bearish movement. The Moving Average Convergence Divergence period 12 with its histogram fading towards below the zero levels and the signal lines bending down to connotes sell signal. Further increase in bear’s pressure may penetrate the $1.29 demand level and target $1.28 demand level. In case the demand level of $1.29 holds, the price may bounce and target $1.31 level.
GBPUSD Medium-term Trend: Bearish
On the medium-term outlook, GBPUSD is bearish. The Bears took over the GBPUSD market after the Bulls pushed the price towards the supply level of $1.32. The price made lower lows movement towards the $1.29 level under the Bear’s pressure.
The currency pair has crossed below the 21 periods EMA and 50 periods EMA. The Moving Average Convergence Divergence period 12 with its histogram below zero levels gradually fading and the signal lines showing no significant direction indicates that consolidation is ongoing in the GBPUSD market.
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