GBPUSD Price Analysis – January 17
In case the Bears were able to push down the price and close below the demand level of $1.29, then, the price may likely decline to reach the low demand level of $1.27. Should the price close above the descending trend line drawn, the price may continue its bullish trend towards the supply level of $1.31.
Key levels:
Supply levels: $1.31, $1.33, $1.34
Demand levels: $1.29, $1.27, $1.25
GBPUSD Long-term Trend: Bearish
GBPUSD is bearish on the long-term outlook. On 13 January, the price closed at the support level of $1.29. The support level holds the price and the Bears were unable to break down the level. The Bulls seize the opportunity to push up the price towards the supply level of $1.31 with the formation of bullish candles. Today, the Bulls initially dominated the market by pushing up the price, later, the Bears prevailed over the Bulls which may be due to fundamental reason (UK Retail sales).
The price is trading between the 21 periods EMA and 50 periods EMA with the daily bearish candles, which indicates that the Bears are gaining upper hand in the GBPUSD market. In case the Bears were able to push down the price and close below the demand level of $1.29, then, the price may likely decline to reach the low of $1.27 demand level. Should the price close above the descending trend line drawn, the price may continue its bullish trend towards the supply level of $1.31. 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 price formed a double bottom chart pattern at the demand level of $1.29. The price increased and penetrated the two EMAs upside. It was increasing towards the supply level of $1.31. The Bears opposed an increase in price due to the change in retail sales at the UK.
GBPUSD is trading between the two EMAs and the Relative Strength period 14 is at 50 levels with the signal lines pointing down to indicate a sell signal.
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