The Bulls may push the price to break up the dynamic support and resistance level and target $1.29 level provided the bullish momentum increases.
GBPUSD Market June 13
Supply levels: $1.26, $1.28, $1.29
Demand levels: $1.25, $1.23, $1.22
GBPUSD Long-term trend: Ranging
On the long-term outlook, GBPUSD is on the ranging mode. The GBPUSD tested the demand level of $1.25 on May 31. The Bears lose the momentum and the price pulled back to test the broken level of $1.26 on June 05. The Bulls made several attempts to break up the level but all to no avail due to the dynamic resistance level at the point. The momentum of both the Bears and the Bulls became equal and it resulted in consolidation at $1.26 supply level.
There is no distance between the currency pair and the two EMAs; it connotes low bearish and bullish momentum. Nevertheless, the currency pair is still trading below the 21 periods EMA and the 50 periods EMA. The Moving Average Convergence Divergence period 12 with its histogram is above zero levels and the signal lines pointing up to indicate a buy signal. The Bulls may push the price to break up the dynamic support and resistance level and target $1.29 level provided the bullish momentum increases.
GBPUSD Medium-term Trend: Bearish
On the medium-term outlook, GBPUSD is bullish. The Bullish engulfing candle formed on May 31 triggered the increase in the Bulls’ momentum which increased the price. The bullish momentum made the price to penetrate the barrier at $1.26 level. The price was advancing towards $1.28 before the Bears interrupted the movement and the sideways movement began around the supply level of $1.26 level.
GBPUSD is hovering over the 21 periods EMA and 50 periods EMA and the two EMAs are close to each other which indicates that consolidation is ongoing in the GBPUSD market.
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