GBPUSD Rebounds Strongly After Pullback To Diagonal Support

Market Analysis – April 7

GBPUSD has rebounded sharply after pulling back to diagonal support. Technical indicators currently point to a bullish outlook for GBPUSD. The price is trading above the 9-day Simple Moving Average (SMA), now positioned around $1.2950, indicating sustained upward momentum. The Stochastic Oscillator has recently formed a bullish crossover near the oversold region, with the %K line rising above the %D line at 26.33 and 35.95, respectively. This crossover from an oversold condition suggests a potential bullish reversal or continuation of the uptrend.

GBPUSD Key Levels

Supply Levels: $1.3050, $1.3250, $1.3430
Demand Levels: $1.2710, $1.2300, $1.2100

GBPUSD Long-Term Trend: Bullish

GBPUSD has maintained a steady uptrend since late 2024, creating a sequence of higher highs and higher lows. After a brief dip that retested both the ascending trendline and horizontal support near $1.2710, the pair surged back and is now trading around $1.2920. The price recently tested a crucial area near $1.3050 but continues to hold above the ascending trendline. The presence of several bullish candlesticks in recent sessions further supports buyers’ dominance in the market.
The bullish outlook remains valid as long as GBPUSD stays above the ascending trendline and the support zone around $1.2900. A confirmed breakout and close above the $1.3050 resistance level may pave the way for a rally toward the next significant level at $1.3250, with a longer-term target around $1.3430. However, should the price retrace, the zone between $1.2710 and $1.2900 is likely to act as a strong demand area, possibly attracting more buyers and setting the stage for another upward move. This scenario could also benefit traders who rely on forex signals for timely market entries.

GBPUSD Short-Term Trend: Bullish

GBPUSD continues to show bullish behavior on the 4-hour chart, following a bounce off the ascending trendline near $1.2910. The pair is currently attempting a recovery, with the resistance area between $1.3010 and $1.3050 serving as a critical zone to monitor. The Stochastic Oscillator is climbing from the oversold region, suggesting the potential for further bullish momentum. If the price retests the trendline and remains above it, a breakout beyond $1.3050 could trigger a rally towards $1.3250.

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