GBP/USD experiences an erratic price movement

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GBP/USD price analysis, April 27, 2022

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As at the time of writing this analysis, the price action is on a downtrend of 1.28321. It is quite a struggle between GBP/USD and the bear is having the upper hand over the bull.

GBPUSD_2022-04-22_17-29-24

From the look of things, the price action is beginning to perform slightly below the moving average curve, favouring the bears. This indicates GBP losing against the USD, but a reversal of the trend might take place since the price action still (at some point) crosses the moving average curve.

Resistance levels: 1.31334, 1.31168, 1.30292

Support levels: 1.31638, 1.30894, 1.30018

By the readings of the Relative Strength Index (RSI), we can see the curve performance below 50%, precisely at 30.68%. This is an indication of a down-trend even as the curve points down towards the crossing of the 30% boundary.
GBPUSD_2022-04-27_18-41-30

If the RSI curve crosses the 30% boundary, the price of GBPUSD may retrace an uptrend either for a short-term or a long-term trend. The behaviour of the Market might be a result of the Russia/Ukraine unrest. This may be creating such an outlook that makes GBPUSD to be trading below its true value. If this happens, a sharp retracement of price action should be expected.

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