After strong bearish pressure from 1.3200, GBPUSD has become very corrective at 1.2900. Currently, GBPUSD is facing a bullish pressure from 1.2900 support level, which may push the price towards 1.300 levels. Let’s check GBPUSD Technical Analysis for more levels and insights.
February 11, 2020 | AtoZMarkets.com – GBPUSD moved from 1.3200 to 1.2900 with an impulsive bearish pressure but failed to settle below the 1.2900. The recent price action is indicating that the GBPUSD is facing support at 1.2900. Therefore, the price is likely to move higher as a correction of the previous bearish rally.
UK Quarterly GDP of Q4, 2019 remained unchanged with an indication of no growth when Q3 of 2019 had a 0.5% growth. Moreover, the manufacturing production disappointed at 0.3%, where the expectation was 0.5%. Despite, the weaker than expected data, GBPUSD is facing bullish pressure at 1.2900 areas. Even if the correction may push the GBPUSD price up, the overall outlook is expected to remain bearish.
GBPUSD is Struggling to Break Below the 1.2900 Area
On 1 hour timeframe, GBPUSD had a close below the 1.2900 level with the corrective structure on Monday. However, the price rebounded from that level suddenly and managed to establish above the level. Today, the price tested the 1.2900 level again and formed a bullish price reversal pattern on the intraday chart, which indicates bullish momentum.
The price became very corrective and volatile as it reached the 1.2900 level. The Dynamic level of 20 EMA became flat along with Tenkan Sen and Kijun Sen. Therefore, the price action indicated that the sellers had lost the momentum as the price started to stall at that level.
However, after the corrective structure from several hours price had a strong bullish Hourly close, which indicates that buyers may take the price upside in the coming hours.
GBPUSD May Touch the 1.300 Area
After the massive bearish momentum, the selling pressure of GBPUSD has become very slow at 1.2900. Moreover, the current price structure indicates that sellers may need a better price to continue the major bearish rally.
On the daily chart, the dynamic level of 20 EMA is just above the 1.30 area. Moreover, Kijun Sen is crossing the Tenkan Sen at that level, which indicates further confluence pressure. Therefore, it is likely that the price will move towards the 1.300 area again before falling further towards 1.2800.
Currently, there is a higher possibility that price will face bullish pressure as long as the price is above the 1.2900 levels. Any daily close below the 1.2900 may drag the price down towards 1.2800. Despite the overall bearish price structure, any strong bullish daily close above 1.300 may alter the current bearish scenario.
To conclude, GBPUSD is facing a bullish pressure 1.2900 area that may push the price towards 1.300 as Retracement. The bias is still Bearish, but certain bullish pressure may be observed along the way with the ultimate target of bearish pressure at 1.2800.