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GBPUSD Daily Chart

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GBPUSD Price Struggles Again at Former Demand Zone

GBPUSD Price Analysis May 21

 

A push from the Bulls to break up the $1.22 price level with the daily candle close above the mentioned level may increase the price to reach the supply levels of $1.23 and $1.25. In case the price level of $1.22 holds, the downtrend may continue and the demand level of $1.20, $1.17, and $1.15 may be reached.

Key levels:

Supply levels: $1.22, $1.23, 1.25
Demand levels: $1.20, $1.17, $1.15

 

GBPUSD Long-term Trend: Bearish

GBPUSD is bearish on the long-term outlook. GBPUSD currency pair remains bearish on the daily chart. The demand level of $1.20 was reached on 15 May. A piercing candle pattern was formed; this made the price increase and retest the supply level of $1.22. The bulls’ pressure is currently weak and the price is consolidating at the level.

GBPUSD Daily Chart

The 9 periods EMA remains below the 21 periods EMA and the price continues its trading below the two EMAs which indicate that the bears are still in control of the GBPUSD market. A push from the Bulls to break up the $1.22 price level with the daily candle close above the mentioned level may increase the price to reach the supply levels of $1.23 and $1.25. In case the price level of $1.22 holds, the downtrend may continue and the demand level of $1.20, $1.17, and $1.15 may be reached. The relative strength index period 14 is above 40 levels with the signal lines parallel to the level to indicate the consolidation market.

GBPUSD Medium-term Trend: Ranging

GBPUSD is ranging on the medium-term outlook. The sellers dominated the buyers for more than two weeks in the GBPUSD market. On 18 May, the buyers took over the market, and the price was pushed up to reach the supply level of $1.22. The bullish momentum became low and the price commences consolidation.

GBPUSD 4 hour chart

The price is hovering over the 21 periods EMA and the 9 periods EMA with the two EMAs interlocked to each other. The Relative strength index period 14 is at 50 levels with the signal line parallel to the level to indicate price consolidation.