GBPUSD bounced higher after the price found support at the dynamic levels. GBPUSD bullish trend may continue towards 1.2800 area? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBPUSD Technical Analysis.
April 10, 2020 | AtoZ Markets – GBPUSD has become quite non-volatile and impulsive after the price bounced from the broadening wedge patterns support. As per the current price action context, the bulls may face resistance at 1.2500 area before bulls continue further in the days ahead.
The pound reversed back against the U.S. Dollar as the Coronavirus continue to harm the U.S. economy. As market sentiments elevate, investors are selling safe-haven currencies like the USD. Moreover, GBP/USD has seen solid gains over the week and recovered almost 50% of the recent drawdown. Besides, though Pound seems very risky currency over the last month but recently it is gaining momentum as Coronavirus situation is improving.
On the other hand, the U.S Dollar weakened as the COVID-19 death toll is increasing gradually. Besides, the total number of Coronavirus cases reached at 486,895 till today, and the total number of death was 16,697. Moreover, the Fed announced a stimulus package of 2.3 trillion dollars to prevent the Coronavirus and its effect on the financial markets.
GBPUSD Bullish Trend Has the Potential to Climb Further
GBPUSD is currently trading around 1.2480 area and trying to push higher. The price was held by the dynamic levels from an extended period, which may lead the price further in the days ahead.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, the price is currently residing near 1.2480 area and trying to reach higher towards 1.2500 resistance. As per the current price action, if the price reaches 1.2500 and rejects, the bears may push the price lower towards 1.2200 again. Alternatively, if price can break above 1.2500 area with an impulsive 4-hour close, GBPUSD bullish trend may sustain further towards 1.2800 in the process.
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic levels may work as a strong support to push the price higher. In contrast, if the price breaks down below the dynamic level, the bears may regain the bearish momentum. Besides, the Stochastic Oscillator lines are rising upward gradually by following the uptrend line, which may sustain further.
GBPUSD Bears Are Still Present in the Market
According to the Daily chart, the price is currently trading around 1.2480 after the price bounce from 1.2200 support level. Moreover, after a massive drop of last month, GBPUSD found support at the broadening wedge pattern around 1.1400 area. As per the current price action, if the price rejects 1.2500 area with a daily close, the bears may push the price lower towards 1.2200 again. Alternatively, if the price breaks above 1.2500 area with a daily close, GBPUSD bullish trend may sustain further towards 1.2800.
Image: GBPUSD Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price, which may work as a strong support in the process. On the other hand, the price retrace higher towards Fibo level 61.8, which may work as a strong resistance. Alternatively, a break above the Fibo level 61.8 may push the price higher in the process.
To conclude, GBPUSD bullish trend has been non-volatile over the week. The price retrace almost 61.8% may recover further in the days ahead. An impulsive daily close is required to find the definite trend.