GBP/USD Price Recap
GBP/USD enters today at 1.30039 in US dollars, down 39 pips (0.3%) from the day prior. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 30.38% from the day before — and down 28.4% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 35th yesterday in terms of percentage price change. Below is a price chart of GBP/USD.
GBP/USD Technical Analysis
First things first: GBP/USD crossed below its 20 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 21.7 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Volatility for GBP/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone up 6 out of the past 10 days. Also, candlestick traders! Note we see evening star pattern appearing here as well.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on GBPUSD, with 16 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 2.67, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
Price is nearing a strong area of support below, forming a potential inverted head on shoulders formation as well. Watching for a bullish reaction off the zone below for price to make its way up towards the descending trendline for a “3rd touch”.