GBPUSD Price Analysis – October 11
Continuation of the Bulls’ momentum may cause the price to penetrate the supply level of $1.25. Should the Bulls’ momentum become weak at the supply level of $1.25, the price may consolidate for a certain period before it continues
Supply levels: $1.25, $1.26, $1.28
Demand levels: $1.23, $1.22, $1.20
GBPUSD Long-term Trend: Bullish
GBPUSD is Bullish on the long-term outlook. GBPUSD was on the ranging mode week before the last within the $1.22 and $1.23 price level. As it was predicted last week, the Bulls gained enough momentum and a massive strong daily bullish candle was formed and increased towards the $1.23 price level. The level could not hold the price. The price penetrated the level and exposed the supply level of $1.25. There is a tendency for the price to carry out price retracement as a normal phenomenon in a trending market.
The two EMAs which were interlocked to each other before when the consolidation was going on in the GBPUSD market has started separating from one another. The price is trading above the two EMAs in which the 21 periods EMA is attempting to cross the 50 periods EMA upside as a sign of bullish movement. Continuation of the Bulls’ momentum may cause the price to penetrate the supply level of $1.25. Should the Bulls’ momentum become weak at the supply level of $1.25, the price may consolidate for a certain period before it continues. The Stochastic is above 25 levels with the signal lines pointing up which connotes buy signal.
GBPUSD Medium-term Trend: Bullish
GBPUSD is bullish in the medium-term outlook. GBPUSD was consolidating just below the demand level of $ 1.22 started from 8th October to 10th October. Increased in the Bulls’ momentum broke up the two EMAs and increased the price towards the $1.23 price level, the level was penetrated to put the GBPUSD price above the level.
GBPUSD is trading above the 21 periods EMA and 50 periods EMA at a distance which connotes strong bullish momentum. The stochastic Oscillator period 14 is at 75 levels with the signal lines pointing up to indicate a buy signal.
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