GBPUSD Price Analysis – October 15
The Bearish movement will continue to the previous low at the $1.26 level, in case the price penetrates the $1.28 level. If the demand level of $1.28 holds a bullish trend will continue and it will be exposed to the resistance levels at $1.32 and $1.34 when $1.30 do not hold.
Key levels:
Supply levels: $1.30, $1.32, $1.34
Demand levels: $1.28, $1.26, $1.25
GBPUSD Long-term Trend: Bearish
The bulls push up GBPUSD to test the resistance level of $1.30 as it was predicted last week. Many traders have joined the buyers’ club since October 02 and GBPUSD has increased more than 0.05% since then. The bulls’ pressure is becoming weak and the price could not increase further. The bears opposed the price increase and it is currently decreasing towards the support level of $1.28. The formation of a bearish engulfing candle at the resistance level of $1.30 triggers the bearish momentum; which is an indication that the currency pair has resumed the bearish movement.
The price is crossing the two EMAs downside while 9 periods EMA is crossing 21 periods EMA as an evidence of bearish movement. The Bearish movement will continue to the previous low at the $1.26 level, in case the price penetrates the $1.28 level. If the demand level of $1.28 holds a bullish trend will continue and it will be exposed to the resistance levels at $1.32 and $1.34 when $1.30 do not hold. Meanwhile, the relative index period 14 is at 50 levels pointing down to indicate a sell signal.
GBPUSD Medium-term Trend: Bearish
GBPUSD is bearish on the 4-hour chart. The price was climbing higher since two weeks ago. The resistance level at $1.30 was reached on October 13 and it pulled back to the $1.29 level. It tested the $1.30 level a second time on October 14. The level seems to be a strong resistance level, GBPUSD bounces off the level and it is decreasing towards the $1.28 level.
GBPUSD is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is below 40 levels with the signal line pointing down to indicate a sell signal. Placing Sell Stop at $1.28766 will be advisable, Take Profit at $1.27126 and Stop loss at $1.29637.
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