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GBPUSD Price May Break Up $1.38 Level Provided Bulls Gain More Momentum

GBPUSD Price Analysis – September 16

The breaking up of the $1.38 level may increase the price to $1.39 which may extend to $1.40 resistance levels. The breakdown of the $1.37 support level may decrease the price to test $1.36 and $1.35 levels.

GBPUSD Market

Key levels:

Resistance levels: $1.38, $1.39, $1.40

Support levels: $1.37, $1.36, $1.35

 

GBPUSD Long-term trend: Ranging

On the daily chart GBPUSD is on the ranging movement. The double bottom chart pattern formed on the daily chart at the support level of $1.35. The currency pair has been obeying the command of the pattern by gradually increasing towards the north. The former resistance levels of $1.36 and $1.37 have turned to resistance levels; which means that Pounds is under the control of the bulls. Bears dominates the market yesterday and the price pulls back. Presently, the pair is ranging within the $1.37 and $1.38 levels.

GBPUSD daily chart, September 16

GBPUSD is currently trading around the 9 periods EMA and the 21 periods EMA which indicate a ranging market.  The relative strength index period 14 is at 50 levels with the signal lines pointing upside to indicate buy signal. The breaking up of the $1.38 level may increase the price to $1.39 which may extend to $1.40 resistance levels. The breakdown of the $1.37 support level may decrease the price to test $1.36 and $1.35 levels.

GBPUSD Medium-term Trend: Bearish

 

GBPUSD is on the bearish movement on the medium-term outlook. On September 14, the bulls pushed up the price and tested the resistance level of $1.39. The mentioned level holds and a strong bearish candle appeared which engulfs the previous candle. Follow the scenario is the formation of more bearish candles which resulted to price declination below dynamic support level.

GBPUSD 4 hour chart, September 16

The price is trading below the 9 periods EMA and the 21 periods EMA as an indication of bearish market. The relative strength index period 14 is at 40 levels pointing up to indicate buy signal.

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