GBPUSD price has reversed sharply after reaching the 1.33120 level, forming a swing high that initiated a steady price decline. This downward movement from the swing high has been consistent, with each daily candle closing lower than its opening price. The demand zone now offers the bulls a crucial opportunity to regain control before a potential downtrend develops.
Since May, GBPUSD price has maintained a bullish market structure, consistently forming higher highs and higher lows. The recent pullback to the broken resistance at 1.30890 triggered a renewed ascent, reaching 1.33120.
On the weekly timeframe, a volume imbalance at 1.33120 halted the upward movement, an effect less noticeable on the daily chart. Additionally, the Stochastic indicator showed overbought conditions, prompting a reversal down to 1.30890. This downward movement was characterized by bearish candles and fair value gaps between the two zones, emphasizing the volatility of this price decline.
GBPUSD Short-term Trend: Bearish
The 4-hour chart indicates a slowdown in bearish momentum near the demand zone, leading to a period of sideways trading. This consolidation suggests a potential reversal. However, a break below this demand zone could signal the start of a new bearish trend. Traders might look for forex signals around these key levels to anticipate further market direction.
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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