GBPUSD Price: Will There be a Bullish Breakout at Multi-year Highs for Resistance?

GBPUSD Price Analysis – December 04

In case the bulls defend the resistance level of $1.3 like the September scenario, the price will decline to $1.32 which may reduce further to test the $1.31 and $1.30 level. The ability to break up the resistance level of $1.34 will place the price at $1.35 and $1.36 levels.

Key levels:

Supply levels:, $1.34, $1.35, $1.36
Demand levels: $1.32, $1.31, $1.30

GBPUSD Long-term Trend: Bullish

The bulls’ momentum is continuously increasing in the daily chart. The Bulls hold tight to the GBPUSD market to the extent that the price is retesting the previous high level it reached in September. The market closed after it breaks up the former resistance level of $1.32 last week, it carried out a retest before the market closed. Today, another daily bullish candle emerges and the price is moving towards the $1.34 level.

GBPUSD Daily chart, December 04

The price is trading above the two EMAs and the 9-periods EMA is above the 21 periods EMA, the distance between the two EMAs indicate strong bullish momentum in the GBPUSD market. In case the bulls defend the resistance level of $1.3 like the September scenario, the price will decline to $1.32 which may reduce further to test the $1.31 and $1.30 level. The ability to break up the resistance level of $1.34 will place the price at $1.35 and $1.36 levels.

GBPUSD Medium-term Trend: Bullish

GBPUSD is bullish in the 4 – hour chart. The price has broken out of the ascending channel formed last week. The price has penetrated the former resistance level of $1.32 and it tested the $1.34 resistance level yesterday. GBPUSD may test the resistance level of $1.35 provided the bears do not interrupt the bullish movement.

GBPUSD 4 hour chart, December 04

GBPUSD remains above the 9 periods EMA and 21 periods EMA at a close range which indicates low volatility in the GBPUSD market. The relative strength index period 14 bending up at 60 levels to indicate a buy signal. It is advisable to place a Buy Stop at $1.34032, Profit at $1.3480 and Stop Loss at $1.3326.