GBP/USD 3 Day Up Streak Ended, Price Base in Formation Over Past 90 Days; Eyes 20 Day Average

GBP/USD Price Recap

GBP/USD is down 9 pips (0.07%) since yesterday (with its current price near 1.29951), marking the 2nd day in a row a decrease has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 57.19% from the day prior, but down 8.56% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/USD ended up ranking 21st for the day in terms of day-over-day price change. Below is a price chart of GBP/USD.

GBP/USD Technical Analysis

The first thing we should note is that GBP/USD is now close to its 20, 50, 100 and 200 day averages, located at 1.3023, 1.3064, 1.2924 and 1.2688 respectively, and thus may be at a key juncture along those timeframes. 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 27.9 pips away. It should be noted, though, the 200 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 8 out of the past 14 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.