GBPUSD Price Analysis – February 06
The demand level of $1.29 has been penetrated; the price is declining towards the demand level of $1.27. Price retracement is inevitable before the continuation of bearish momentum.
Supply levels: $1.29, $1.31, $1.33
Demand levels: $1.27, $1.25, $1.23
GBPUSD Long-term Trend: Bearish
GBPUSD is bearish on the long-term outlook. GBPUSD pair was bullish till January 31, the barrier at the supply level of $1.31 opposed a further increase in price. The strong momentum of the Bulls, which is clearly seen on the daily chart with the strong, massive bullish candle, could not break up the supply level of $1.29. The Bears gathered enough momentum and push down the price from the supply level of $1.31 to the demand level of $1.29. Today, the Bears dominate the GBPUSD market and the demand level of $1.29 was penetrated and the price is declining towards the demand level of $1.27.
The currency pair has crossed the two EMAs downside and it is currently trading below the 21 periods EMA and 50 periods EMA which connotes that the Bears are taking over the GBPUSD market. The demand level of $1.29 has been penetrated; the price is declining towards the demand level of $1.27. Price retracement is inevitable before the continuation of bearish momentum. The relative strength index period 14 is at 40 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. On February 05, a candle reversal pattern called “Twizer Top” emerged. Following the pattern is the formation of more bearish candles that breaks down the demand level of $1.29.
The 21 periods EMA and the 50 periods EMA are above the price and the two are well separated which connotes that the bearish momentum is increasing daily. The Relative strength index period 14 is at 20 levels with the signal line pointing down to indicate sell signal.
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