On the daily chart, the daily candle formed is a dragonfly Doji candle which indicates a bullish reversal; the price may reverse at the demand level of $1.20.
GBPUSD Market August 02
Supply levels: $1.22, $1.23, $1.25
Demand levels: $1.20, $1.17, $1.15
GBPUSD Long-term Trend: Bearish
GBPUSD is bearish in the long-term outlook. GBPUSD was ranging within the supply level of $1.25 and the former support level of $1.23 last week in the horizontal channel. There was a bearish breakout at the former demand level of $1.23 on July 26, followed the breakout was the formation of a strong massive bearish candle which penetrated the demand level of $1.22. The price is heading towards the demand level of $1.20.
The price is trading at a distance to the two EMAs in which the pair is below the 21 periods EMA and 50 periods EMA which indicates strong bearish momentum. Meanwhile, the Stochastic Oscillator period 14 is below 20 levels (oversold level) with the signal lines bending up to indicate buy signal. On the daily chart, the daily candle formed is a dragonfly Doji candle which indicates a bullish reversal; the price may reverse at the demand level of $1.20.
GBPUSD Medium-term Trend: Ranging
On the medium-term outlook, GBPUSD is Bearish. Last week, GBPUSD price was ranging within a rectangle pattern in the 4-hour chart. The Bears exerted pressure and the demand level of $1.23 could not hold the price. The price declined towards the demand level of $1.20 and started a sideways movement within the $1.22 and the $1.20 price levels.
GBPUSD is trading below the two EMAs and the Stochastic Oscillator period 14 is at 25 levels with the signal lines pointing up to indicate a buy signal.
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