The price of GBP/USD is currently undergoing a strong term pullback within a range, as it tests resistance levels at 1.3032. Despite the pullback, the price remains above both the 200 and 50-day moving averages, indicating a bullish market sentiment.
Scenario 1: there is potential for the price to continue moving higher, testing the 1.3031 level and potentially reaching the upper levels between 1.3066 and 1.3089. If bullish momentum persists, further upward movement could lead to a test of the levels at 1.3100 to 1.3115, with the top resistance level to watch being at 1.3115 to 1.3176. These levels present significant barriers that could determine the market’s direction.
Scenario 2: the price may experience a decline from the current levels, finding support at the 1.2995 level, which aligns with the 50% Fibonacci retracement level. If this support level fails to hold, further downward movement could be observed, with potential tests at the 1.2966 and 1.2935 levels. Notably, the 1.2915 level is a significant support level to monitor.
In terms of short-term momentum, the pair is currently showing an upward bias, approaching bullish territory. However, the Relative Strength Index (RSI) is in an undecided range, indicating caution should be exercised.
Overall, the market is likely to fluctuate within the range of 1.2827 to 1.3100 levels. It is crucial to closely observe how the price reacts at these levels as it could provide insights into the market’s future direction.
Key levels to watch for potential market movements include 1.2979, 1.2995, 1.3007, 1.3041, 1.3089, 1.3100, 1.2935, 1.2915, and 1.3115. These levels serve as important reference points for traders and can influence the market’s behavior.
