#GBPUSD Price: Formation of an Inverted Head and Shoulder Pattern (26 MAY 2022)
GBPUSD Price Analysis – May 26
An increase in the price of GBPUSD is highly envisaged as the currency pair is targeting the resistance level of $1.26, the next upward movement may target the $1.27, and $1.29. In case the resistance level of $1.26 holds, bears may take over and the price may decline towards the support levels of $1.25, $1.24 and $1.23.
Key levels:
Supply levels: $1.26, 1.27, $1.28
Demand levels: $1.25, $1.24, $1.23
GBPUSD Long-term Trend: Bullish
On the long-term outlook, GBPUSD is bullish. The currency pair bottomed at the support level of $22 last two weeks in the GBPUSD market. The mentioned demand level hold the price, and this made the price action to commence the formation of chart pattern called inverted Head and Shoulder. It is a bullish chart pattern and the bulls are ready take over the market.
The 9 periods EMA is crossing the 21 periods to establish a bullish trend. The price is trading above the two EMAs which indicate an increase in the bulls’ momentum. An increase in the price of GBPUSD is highly envisaged as the currency pair is targeting the resistance level of $1.26, the next upward movement may target the $1.27, and $1.29. In case the resistance level of $1.26 holds, bears may take over and the price may decline towards the support levels of $1.25, $1.24 and $1.23. The relative strength index period 14 is at 50 levels with the signal lines pointing up to indicate buy signal.
GBPUSD Medium-term Trend: Bullish
GBPUSD is bullish on the medium-term outlook. When the sellers could not break down the support level of $1.22. The price action formed an inverted head and shoulder chart pattern. It makes the Buyers prevailing over the sellers and the price is increasing to test the resistance level of $1.26. Bullish pressure is increasing at the moment.
The price is trading above the 21 periods EMA and the 9 periods EMA with the two EMAs crossing each other. The Relative strength index period 14 is at 61 levels with the signal line pointing up which indicate buy.
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