GBP is a great Britain currency while USD is a USA currency. Both currencies are used to conduct daily transaction activities in the respective jurisdiction. On Monday, the 9th of August, one GBP started trading at around 1.38930. By Tuesday the same week,the price had managed to go as low as 1.38290 but slightly rises to around 1.3846 the same day. On Wednesday ,the price dropped again to around 1.38031 but later rises to around 1.38871 the same day. On Thursday the same week,the price again dropped to around 1.37941. This upwards and downwards movement is as a result of traders behaviour which can be explained as from below;
Forex traders affect the way the market moves. When the market is moving upwards, that will be an indication that the sellers are more than the number of buyers . On the other hand, when the market is moving downwards, that will be an indication that the buyers are more than the sellers. Since there is possibility of the GBPUSD market to have gained an upward market pressure, we can further explain its bullish trend as from below;
1. GBPUSD bullish price analysis
In a bullish market, the GBPUSD will be moving in an upwards direction. On Monday, the 9th of August, one GBP started trading at around 1.38930. By Tuesday the same week,the price had managed to go as low as 1.38290 but later rises to around 1.3846 the same day. On Wednesday the same week, the price again dropped to around 1.38031 but rises to around 1.38871 the same day. On Thursday the same week, the price again dropped to around 1.37941. This GBPUSD market trend is being indicated as from the candle sticks chart below;
The above is the market for GBPUSD. Two points are being indicated. There is A and B. Before A , the GBPUSD market can be seen to have moved from as high as 1.38900 all the way to as low as 1.38058. This downwards movement is as a result of the traders placing their buy positions being more than those placing their sell position thus causing the market to experience a downwards pressure. At 1.38058, there are more sellers placing their sell positions in the hope that the market will continue moving downwards. Because of this,the market for GBPUSD gains an support point over there and moves upward with few buyers to point A at around 1.38800. At point A, there are more buyers again placing their buy positions in the hope that the market will continue moving upwards. This again cause the buyers to exceed the number of sellers over there which causes the market to resist moving upwards and instead moves downward to point B at around 1.37900. At point B, there are more sellers placing their sell positions again hoping the market to continue moving downwards. This is causing the market to gain support over there and has started to move upwards. There is possibility of the market to move upwards in the coming week if the sellers will exceed the buyers while if the buyers will be more than the sellers, then the market can continue moving downwards. Make sure that you have applied risk management and your strategy well on your running position so that whether the market will move upwards or continue moving downwards, it will not punish you.