GBPUSD Bullish Strength Slows Down

Market Analysis December 4th

GBPUSD bullish strength slows down. The pair has experienced a slowdown in bullish momentum due to the presence of sellers. The market has been characterized by a back-and-forth battle between traders, with each side seeking dominance. Bears took control starting in July, pushing the price lower from the 1.31230 level. The bulls attempted to break through the 1.32000 price zone but faced setbacks.

GBPUSD Price Zones

Resistance Zones: 1.312390, 1.27320
Support Zones: 1.26150, 1.23810

GBPUSD Long-Term Trend: Bullish 

However, a shift occurred in October as bulls regained strength and pushed the price upward, reaching close to the 1.20000 mark. This resurgence indicates a potential change in market sentiment. Despite the challenges faced between July and October, bulls made a notable breakthrough by surpassing the 1.23850 level.

Currently, the market has found some stability, but the bullish momentum is slowing down due to the influence of sellers. While further expansion may still occur in the coming days, there is a decrease in price momentum. The Relative Volatility Index shows a decrease in volume flow, indicating less participation from buyers. However, the buyers still hold a strong position, as indicated by the MA Moving Average Crossing not yet signaling a reversal.

GBPUSD Short-Term Trend: Bullish 

Sellers continue to pose a threat to bullish expansion on the 4-hour chart. Once this phase is over, buyers are expected to rebound with strength. There is therefore still a position for the accumulation phase, with bullish strength on a low impulse at the start of the week.

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