GBP/USD 240 Minute Chart Analysis
The GBP/USD currency pair is currently exhibiting both short-term and long-term bullish trends, with significant price movement towards the 1.2596 level, which holds substantial importance as a major test level for this market. It is worth noting that the price is currently positioned above the 200-day and 50-day moving averages, further supporting the overall bullish bias.
Scenario 1: if the existing bullish momentum persists, we may witness a robust push towards retesting the June highs at the 1.2596 level. Upon successfully surpassing this level, the market could potentially extend its upward trajectory, targeting the 1.2618 level and the 1.2652 level, which aligns closely with the May highs.
Scenario 2: a short-term bearish outlook cannot be ruled out. In such a scenario, the market may test the 61.8% Fibonacci retracement level at 1.2534. Sustained bearish pressure could lead to the examination of the psychological support level at the 50% Fibonacci retracement level, situated at 1.2491. This level holds significant importance as a potential turning point, potentially leading to a shift in market bias.
The short-term relative strength indicator signals a bullish market sentiment, suggesting further room for upward movement.
Considering the significance of lower support levels, their behavior in response to the upcoming news events will play a pivotal role in guiding market decisions. It is essential to understand that the GBP/USD pair has already appreciated by approximately 1.39% this month, highlighting a strong bullish bias prevailing in the market.
In conclusion, the GBP/USD currency pair exhibits a compelling bullish outlook, supported by its current technical positioning and overall market sentiment. However, it is crucial to monitor the upcoming news releases closely as they have the potential to shape the future direction of this currency pair. Traders should remain cautious, adapting their strategies accordingly to navigate the ever-changing market conditions successfully.
Key Levels to watch are 1.2536, 1.2564,1.2600,1.2467 and 1.2448
