GBPUSD Breaking below support at 1.2500 area can push lower. After an impulsive and non-volatile Bearish momentum, GBPUSD reached psychological level 1.2500. Let’s check GBPUSD Technical Analysis for more levels and insights.
March 13, 2020 | AtoZ Markets – GBPUSD Bearish Pressure already took the price below July 2019’s low. After rejecting the 1.3200 key resistance area, GBPUSD pushed lower quite impulsively. Recently, the Bulls find support at 1.2500 area and GBPUSD bounce higher.
The U.S. dollar gained after the Federal Reserve’s commitment to inject $1.5 trillion in reserve into the monetary system on Thursday. The Fed also announced that the injection of reserves through T-bill buying is an essay to calm a huge liquidity problems in the world’s risk-free assets.
GBP fall after the Coronavirus infected numbers increased and the BOC’s rate cut by 50 basis points. The monetary policy committee voted on the favour of interest rate cut before schedule. It took the interest rate from 0.75% to 0.25% to support the economic unrest pandemic.
GBPUSD Breaking Below Psychological Support Level
GBPUSD has been quite impulsive and non-volatile with the recent Bearish pressure. The price reached lower towards 1.2500 area and broke it with ease having confluence from the dynamic levels.
Image: GBPUSD 1 Hour Chart
According to the 1-hour chart, GBPUSD is currently heading lower after breaking below 1.25 area already. GBPUSD is now becoming non-volatile with the Bearish pressure as Bulls failed to bounce higher from the significant level at 1.25.
On the other hand, MACD lines below 0.00 level is indicating intense Bearish pressure in the making. Though 1.25 was expected to hold the price higher but breaking below the level may encourage Bears further to push the price lower towards 1.20 in future.
GBPUSD Bears are Unstoppable
According to the Daily chart, GBPUSD breaking below 1.25 with no indication of counter price action explains further downward pressure in the coming. Though the dynamic levels are residing quite far from the current price area, price is turning more impulsive with the Bearish pressure.
Image: GBPUSD Daily Chart
GBPUSD has been strongly Bearish after it rejected the 1.3200 area with a daily close. Since then, the price managed to push lower consistently without any retrace higher. As per the MACD indicator, there is no indication of Bullish Divergence, which confirm further Bearish pressure is in the making. Though dynamic levels like 20 EMA, Tenkan and Kijun is residing quite far from the current price area, Bears may dominate further towards the 1.2200 area before any Bullish intervention is observed.
To conclude, GBPUSD Bears are currently quite active with the recent price action while breaking an important support level at 1.2500. As current Bias continues, GBPUSD may reach 1.22 area in no time.