In case the daily bullish candle closes above the supply level of $1.26, the currency pair may target $1.28 level. Otherwise, the price may start ranging movement at the level.
GBPUSD Market June 20
Supply levels: $1.26, $1.28, $1.29
Demand levels: $1.25, $1.23, $1.22
GBPUSD Long-term trend: Bullish
GBPUSD is bullish on the long-term outlook. The GBPUSD was on the ranging mode till June 12. Last week, the Bears initially dominated the market by breaking down the $1.26 level, it decreased further to the demand level of $1.25. The Bulls defended the mentioned level with the formation of the Morning star candle pattern, which is a bullish reversal pattern. Today, another strong bullish candle emerged on the daily chart that increases the price towards $1.26 level.
In case the daily bullish candle closes above the supply level of $1.26, the currency pair may target $1.28 level. Otherwise, the price may start ranging movement at the level. Meanwhile, the currency is breaking into the gap between the 21 period EMA and 50 periods EMA which indicates an increase in the bullish pressure in the GBPUSD market. The Stochastic Oscillator period 14 confirmed the bullish movement as it is found at 50 levels with the signal lines pointing up.
GBPUSD Medium-term Trend: Bullish
On the medium-term outlook, GBPUSD is bullish. The Bulls took over the market with the formation of Bullish engulfing candle at $1.25 level on June 18. The increase in the Bulls’ momentum increased the GBPUSD price. The bullish momentum made the price to penetrate the barrier at a dynamic resistance level (21 and 50 periods EMA). The price was advancing towards $1.26 and broke up the level. Price retest to the broken level is ongoing.
GBPUSD is trading above the 21 periods EMA and 50 periods EMA and the former EMA is trying to cross over the later EMA to establish a bullish trend.
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