GBPUSD Forecast – 1.29795 sign of strong demand

Date published - 19 Apr 2022

GBPUSD chart analysis

It was mentioned in the previous week's analysis that there is a strong support level at 1.29795 where the price could stall. And the price stopped there for a few days when it moved sharply over 170 pips

That pip range shows us strong demand on the 1.29795 support level which confirms that there are bulls defending that area.

After a strong retrace, the price formed an indecision candle and turned down again. The resistance at 1.30968 was mentioned last week as a possible entry-level for the bears. And the price changed the direction of the confluence of resistance.

A horizontal resistance level and downtrend resistance line formed a strong supply zone and prevented the price from reaching higher levels.

Feat Img

GBPUSD Chart Forecast

The price is now close to the 1.29795 support level like the previous week. Since it is the third time price reached this level, We can expect selling pressure at this level that will push the price lower. We need to wait until the price breaks below the previous daily candles low. Which is below 1.29980 as the first step.

The second step is to wait until the price breaks below the 1.29795 support level, which will be an indication of the future sale of targeting the 1.28803 support level.

If the price breaks below it is good to wait until the price makes a retrace and confirms 1.29795 as a resistance level.

On the upper side, we have 1.30968 as the first obstacle for the price to change the trend in the short term. 1.32077 is the main target for the bulls to change the market overview and we start looking for bullish trading opportunities.

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Frano Grgić

Frano is an engineer, author, forex trader and the owner of a blog where he teaches forex courses for beginners. Frano created a website on how to trade forex to share his knowledge, market analysis which is also published on forexFactory.com, investing.com and many other trading related websites.

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