Further decrease in GBPUSD price is envisaged should the Bears increase their pressure and the price may reach the demand level of $1.20.
GBPUSD Market August 29
Supply levels: $1.22, $1.23, $1.25
Demand levels: $1.20, $1.17, $1.15
GBPUSD Long-term Trend: Bearish
On the long-term outlook, GBPUSD is bearish. The bullish engulfing candle formed on August 22, geared up the currency pair price to the supply level of $1.22. The bullish momentum extended the price above the mentioned level. The Bulls lost the pressure and the Bears’ momentum was weak, thus, the price continues consolidation at the Supply level of $1.22 throughout last week. Today’s market was bearish and the price broke below the supply level of $1.22.
The price reversed from trading above the 21 EMA periods 14 and descended below the two EMAs which indicate an increase in bearish momentum in the GBPUSD market. Further decrease in GBPUSD price is envisaged should the Bears increase their pressure and the price may reach the demand level of $1.20. Meanwhile, the Stochastic Oscillator period 14 is at 75 levels with the signal lines pointing down to indicate a sell signal.
GBPUSD Medium-term Trend: Bearish
GBPUSD is bearish in the medium-term outlook. The Bears interrupted the increase in price towards the supply level of $1.22 with the formation of bearish inside bar candle on August 27. The currency pair produced the strong bearish candle that broke down the former demand level of $1.22, pulled back to retest the broken level and decrease slowly towards the demand level of $1.20.
GBPUSD price is trading below 21 periods EMA and 50 periods EMA. The stochastic Oscillator period 14 is at 25 levels with the signal lines pointing down to indicate a sell signal.
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