GBPUSD: Break of 1.3130 Level, May Accelerate Upward Move in the Near Term

GBPUSD: Break of 1.3130 Level, May Accelerate Upward Move in the Near Term

GBPUSD Price Analysis – December 29

Despite constant fears about a tough Brexit, the GBPUSD pair rose to the level of 1.3117 last Friday, the highest level in almost two weeks, to finally settle at a level in the price area of 1.3080. The steady increase in sterling, however, has not yet been registered.

Key Levels
Resistance Levels: 1.3514, 1.3229, 1.3130
Support Levels: 1.2905, 1.2582, 1.1958

GBPUSD Long term Trend: Bullish

The daily chart for the GBPUSD pair shows that growth stopped at about the upper horizontal resistance level at 1.3514, while technical indicators turned north, but are currently at neutral levels, not reaching out to support further growth.

Reactions from there may determine whether it is in consolidation from the level at 1.1958 (low). Or a solid breakout of the level at 1.3600 may indicate a long-term bullish reversal. In any case, at the moment, the forecast may stay bullish, while the resistance resists the level at 1.2582.

GBPUSD Short term Trend: Bearish

On a 4-hour chart, the pair bounced off its moving average 5 and 13 to meet sellers around the upper horizontal resistance zone on the level at 1.3514, both lacking directional strength. Meanwhile, technical indicators are turning south within positive levels, indicating a decline in buyers’ interest at current levels.

The break of the GBPUSD pair to a slight resistance of the level at 1.3072 indicates that the correctional form of the fall of the level at 1.3514 completed at 1.2905 level after receiving support from the recovery from 1.1958 to 1.3514 on the bullish trendline.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.