GBPUSD Price Analysis – September 17
Should the resistance level of $1.30 hold, the price will reverse and continue on the bearish trend, the support level to watch out are $1.28, $1.26, and $1.25. In case the resistance level of $1.30 does not hold, the price may test the $1.32 and $1.34 price level.
Supply levels: $1.30, $1.32, $1.34
Demand levels: $1.28, $1.26, $1.25
GBPUSD Long-term Trend: Bullish
GBPUSD is bullish last week; this is clearly displayed on the daily chart. The pair was bullish before September 01. The bullish momentum pushed the price to the $1.34 resistance level. A strong inverted hammer appeared as a bearish reversal signal; GBPUSD price decreased to the support level at $1.28. On September 11, a bullish reversal signal formed called Morning Star and the price pullback targeting the resistance level of $1.30.
The price is penetrating the 9 periods EMA at the moment of writing this report and the price is on the mentioned dynamic resistance. This movement is a pullback to the bearish trend. Should the resistance level of $1.30 hold, the price will reverse and continue on the bearish trend, the support level to watch out are $1.28, $1.26, and $1.25. In case the resistance level of $1.30 does not hold, the price may test the $1.32 and $1.34 price level. Meanwhile, the relative strength indicator period 14 is pointing towards the north as a symbol of the bullish movement.
GBPUSD Medium-term Trend: Bullish
GBPUSD is bullish in the 4-hour chart. The currency pair reached a low of $1.28 last two weeks, the level holds the price and it consolidates for a few days. The buyers gained momentum and push up the price towards the resistance level at $1.30. It looks like the momentum of the bulls is getting weak; the price is consolidating around the two dynamic resistance levels.
The price is struggling to break up the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is above 50 levels with the signal line pointing up to indicate a buy signal. Placing Sell Limit at $1.30778 will be advisable, Take Profit at $1.26655 and Stop loss at $1.32093.