GBPUSD Price Analysis – June 16
In case the resistance level of $1.24 is defended by the bears, the price may decline towards the support levels of $1.24, $1.23 and $1.22. The next upward movement may break up $1.24 to target the $1.25, and $1.26.
Supply levels: $1.24, $1.25, 1.26
Demand levels: $1.23, $1.22, $1.21
GBPUSD Long-term Trend: Bearish
GBPUSD is bearish on the long-term outlook. Last two weeks, the bulls seem to gain upper hand over bears. The price closed at the resistance level of $1.25. The bulls’ momentum failed and the mentioned resistance level could not be broken upside. There was a brief ranging movement within $1.25 and $1.24 levels. A bearish engulfing candle pattern formed and the price obeyed the command. The support level of $1.23 was broken downside and the previous low was tested at $1.19.
GBPUSD is increasing as the bulls’ pressure increases with the formation of daily bullish candles. The currency pair breaks up the resistance level of $1.23. The price is trading between 9 periods EMA and 21 periods EMA to establish a bullish trend. In case the resistance level of $1.24 is defended by the bears, the price may decline towards the support levels of $1.24, $1.23 and $1.22. The next upward movement may break up $1.24 to target the $1.25, and $1.26. The relative strength index period 14 is at 46 levels with the signal lines pointing up to indicate buy signal.
GBPUSD Medium-term Trend: Bullish
GBPUSD is bullish on the medium-term outlook. The price action on 4-hour chart has formed an inverted head and shoulder pattern. It is a bullish reversal pattern and the price may target the resistance level of $1.25. When the buyers pushed the price to break the resistance level of $1.24, price may reach the $1.25 and $1.26 levels.
The price is already trading above the 21 periods EMA and the 9 periods EMA. The Relative strength index period 14 is at 61 levels with the signal line pointing up which indicate buy.