GBPUSD Price Analysis – December 02
In case the support level of $1.32 holds, price may reverse and increase to the resistance levels of $1.33, $1.34 and $1.35. When the bears break down the $1.32 level, price may decrease towards $1.31 and $1.30 levels.
Resistance levels: $1.33, $1.34, $1.35
Support levels: $1.32, $1.31, $1.30
GBPUSD Long-term trend: Bearish
GBPUSD is bearish on the daily chart. The sellers take full control of the GBPUSD market since October 29 from the resistance level of $1.37. The currency pair decreases and break down the support levels of $1.36 and $1.35. It pulled back at $1.34 level to retest the broken level. On November 19, Sellers resumed the market and the price continue falling to $1.31 level. The bearish momentum is getting weak as the price pulled back to retest $1.33 level.
The currency pair is trading below the 9 periods EMA and the 21 periods EMA which indicate a bearish market. The relative strength index period 14 is above 30 levels with the signal lines pointing upside to indicate buy signal. In case the support level of $1.32 holds, price may reverse and increase to the resistance levels of $1.33, $1.34 and $1.35. When the bears break down the $1.32 level, price may decrease towards $1.31 and $1.30 levels.
GBPUSD Medium-term Trend: Bearish
GBPUSD is on the bearish movement in the medium-term outlook. After the interruption of the bullish momentum the market experienced last two weeks, bears hold on to the market and the price continuously decline towards the support level of $133. It carried out a retracement towards the broken level. The price declines further to test $1.31 level.
At the moment, price is trading around the 9 periods EMA and the 21 periods EMA as an indication of ranging market. However, the relative strength index period 14 is at 40 levels pointing downside to indicate sell signal.