The GBPUSD market has shown a strong and impulsive rally, driving the price from 1.26690 to 1.32620. However, signs of bullish exhaustion have appeared, leading to the current corrective phase marked by a gradual pullback. The price is now approaching the key Bullish Breaker Block at 1.30450, which could act as a crucial support level to rekindle bullish momentum.
Since establishing a swing low at 1.22990 in April, GBPUSD price has maintained a solid bullish structure, consistently forming higher highs and higher lows. However, the formation of a failed high in September indicates a potential weakening in market strength after an extensive 4.62% price displacement.
The GBPUSD pair has dipped below the 9-period Moving Average, indicating a retracement. Meanwhile, the Williams Percent Range is trending into the oversold zone as the price nears the key support area at 1.30450, suggesting a possible shift in momentum.
GBPUSD Short-Term Trend: Bearish
On the 4-hour chart, GBPUSD remains in a bearish phase. The Williams Percent Range is also oversold, reflecting the trend on the daily timeframe. The Bullish Breaker Block at 1.30450 has the potential to reverse the short-term trend, depending on buyer interest at this critical level. A structural shift on lower timeframes could generate high-probability forex signals with a favorable risk-to-reward ratio.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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