Market Analysis – October 16
GBPUSD bears eager for further decline. The market is witnessing a resurgence of bearish momentum. It looks like the bearish force is ready to dominate once again. The bulls have recently yielded to the mounting sell-side pressure. This developing sentiment may lead to a more substantial decline towards the 1.20320 significant level.
GBPUSD Key Levels
Resistance Levels: 1.31450, 1.28830
Support Levels: 1.20320, 1.18020
GBPUSD Long-Term Trend: Bearish
The battle between buyers and sellers has been fierce, with buyers attempting to assert their influence around the 1.23360 significant level last week. However, bears have been gaining strength in the GBPUSD market since July. This shift came after buyers encountered a formidable resistance barrier around the 1.31450 significant level. Subsequently, the market has been on a persistent downtrend, breaching several key zones. Despite occasional price pullbacks initiated by buyers, sellers have remained resolute in their efforts.
In the most recent data, it’s clear that sellers are poised to drive prices lower once more. This suggests that bears may succeed in pushing the market’s tendency below the 1.20320 significant level. The Stochastic RSI (Relative Strength Index) paints a bearish picture as it signals an overbought condition on the daily chart. This overbought reading reinforces the notion that sellers are resolute and committed to a further market dive.
GBPUSD Short-Term Trend: Bearish
The contribution of sell-side traders continues to play a crucial role in driving prices lower. In the coming sessions, we may witness an intensification of selling pressure should sellers further consolidate their influence.
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