Analysis

GBPUSD Price: Support Level of $1.31 Holds, Price May Reverse

 

GBPUSD Price Analysis – December 16

In case the bulls increase their momentum, it will increase the price to penetrate $1.33 level which will push the price to test $1.34 and $1.35 price level. Should the bears defend the resistance level of $1.33, price may break down the support level of $1.31, it will decrease to $1.30 and $1.28 price levels.

GBPUSD Market

Key levels:

Resistance levels: $1.33, $1.34, $1.35

Support levels: $1.31, $1.30, $1.28

 

GBPUSD Long-term trend: Bearish

GBPUSD is bearish on the daily chart. GBPUSD continue to be under the bears’ pressure as more bearish candles are emerging. It seems the bears’ pressure is getting low; the price found support at $1.31 and the support level is resisting the bears’ pressure. Today, the bulls are gaining more momentum and they dominate the market. The price is bouncing away from the support level of $1.31.

GBPUSD daily chart, December 16

The price is trading above the 9 periods EMA and the 21 periods EMA which indicate that buyers are dominating the market. The relative strength index period 14 is at 50 levels with the signal lines pointing up to indicate buy signal. In case the bulls increase their momentum, it will increase the price to penetrate $1.33 level which will push the price to test $1.34 and $1.35 price level. Should the bears defend the resistance level of $1.33, price may break down the support level of $1.31, it will decrease to $1.30 and $1.28 price levels.

 

GBPUSD Medium-term Trend: Bullish

GBPUSD is on the bullish movement on the medium-term outlook. The bears’ momentum is getting exhausted at $1.31 support level. The price consolidates for many days at the mentioned level. Today, bulls put end to ranging movement in GBPUSD market. Bearish movement may seize if $1.31 level holds.

GBPUSD 4-hour chart, December 16

The price is trading above the 9 periods EMA and the 21 periods EMA as an indication of bullish market. The relative strength index period 14 is at 70 levels displaying buy signal.

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