GBPUSD Price Analysis – December 19
Further increase in the Bears’ momentum may break down the demand level of $1.29 and this may expose the price to the demand level of $1.27. Should the Bulls defend the demand level of $1.29, the price may bounce and face the north
Supply levels: $1.31, $1.33, $1.34
Demand levels: $1.29, $1.27, $1.25
GBPUSD Long-term Trend: Bearish
On the long-term outlook, GBPUSD is bearish. On December 13, there was a sudden increase in GBPUSD price; this is clearly seen on the 4-hour chart with the formation of a strong and massive bullish candle. The price broke up the resistance level of $1.31 and extends to the $1.31 price level. Fake breakout was experienced. The following day, an evening star candle pattern formed which is a bearish reversal candle pattern. The Bears took over the GBPUSD market and the price reversed to retest the demand level of $1.29.
The pair is currently trading in –between the 21 periods EMA and 50 periods EMA after crossing 21 periods EMA downside. Further increase in the Bears’ momentum may break down the demand level of $1.29 and this may expose the price to the demand level of $1.27. Should the Bulls defend the demand level of $1.29, the price may bounce and face the north. However, the relative strength index period 14 is at 50 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 continue to dominate the GBPUSD market as it is seen on the 4-hour chart. The former demand level of $1.31 was penetrated downside and the price continues to decline and reached the demand level of $1.29.
The 21 periods EMA has crossed the 50 periods EMA downside, the price is currently trading below the two EMAs which indicates that the Bears are in control of the GBPUSD market. The stochastic Oscillator period 14 is at 20 levels with the signal lines pointing down to indicate a sell signal.
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