GBPUSD Shows Strength as Buyers Eye Higher Levels Ahead

Market Analysis – May 5

GBPUSD shows strength as buyers eye higher levels ahead. The 9-day Simple Moving Average (SMA) at $1.33200 is currently acting as dynamic resistance after previously serving as support, while the Relative Strength Index (RSI) at 57.79 remains above the neutral 50 line, signaling that bullish momentum persists. The RSI’s recent rebound from a near-oversold dip indicates that buying pressure is recovering, though the market may consolidate briefly before making a decisive move. With both indicators displaying bullish signals, the trend bias continues to favor the bulls.

GBPUSD Key Levels

Supply Levels: $1.3440, $1.3800, $1.4000
Demand Levels: $1.3210, $1.2710, $1.2100

GBPUSD Long-Term Trend: Bullish

Price action reveals that GBPUSD has established a strong bullish structure after a confirmed Change of Character (CHoCH) around $1.27140, triggering a sharp rally toward $1.34430. The pair is currently pulling back into a bullish block between $1.32070 and $1.33200, which coincides with the previous breakout zone. Price respecting this support area represents a healthy correction within the broader uptrend, and the formation of higher lows continues to support bullish sentiment.

The bullish outlook for GBPUSD remains intact as long as the price holds above $1.32070. A successful rebound from the current support zone could drive the price toward the next resistance level at $1.38000, with the potential for an extended move toward $1.40000 if bullish momentum gains strength. Traders seeking reliable forex signals may find opportunities as the trend unfolds.

GBPUSD Short-Term Trend: Bullish

On the four-hour chart, GBPUSD is trading within a range defined by the $1.27140 low and the $1.34430 swing high. Since the bullish wave began last month, the price has advanced in a series of upward fractals.
The market is currently undergoing a short-term pullback. However, the RSI is approaching an oversold condition as the price nears the critical demand zone, suggesting that a bullish reversal could be imminent.

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