GBPUSD Price Analysis – September 24
The bulls may dominate the GBPUSD market soon, provided the support level at $1.26 holds the price; it will increase and may likely test the $1.28, $1.30, and $1.32 resistance level. Looking downside, support levels may be found at $1.26, $1.25, and $1.23.
Supply levels: $1.28, $1.30, $1.32
Demand levels: $1.26, $1.25, $1.23
GBPUSD Long-term Trend: Bearish
GBPUSD is bearish in the long-term outlook. Last two weeks, the currency pair was supported at the price level of $1.28. A candle pattern formed that is called Morning Star; it is a bullish reversal pattern, then, the price increases towards $1.30 level. The dynamic resistance levels prevented an increase in price and it could not test the resistance level at $1.30.On September 18, a bearish candle emerged and push down the price towards $1.26 price level.
GBPUSD is already trading below the 9 periods and 21 periods EMA with an increase in distance between EMAs and the price which connotes strong bearish momentum. The bulls may dominate the GBPUSD market soon, provided the support level at $1.26 holds the price; it will increase and may likely test the $1.28, $1.30, and $1.32 resistance level. Looking downside, support levels may be found at $1.26, $1.25, and $1.23. Meanwhile, the relative strength indicator period 14 is pointing towards the north as a symbol of the bullish movement.
GBPUSD Medium-term Trend: Bearish
GBPUSD is bearish in the 4-hour chart. The increase in the strength of the US dollar creates more opportunity for the sellers to dominate the GBPUSD market last week. The currency pair reached a low of $1.26 after breaking down the former support level at $1.28. At the moment, the pair is ranging within $1.28 and $1.26.
GBPUSD is making an attempt to break up the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at 40 levels with the signal line pointing up to indicate a buy signal. Placing Buy Stop at $1.2858 will be advisable, Take Profit at $1.3188 and Stop loss at $1.2622