GBPUSD Up 76 Pips Over Past Hour, Moves Down For the 4th Straight Day; in an Uptrend Over Past 90 Days

Hourly Update

(Last Updated September 9, 2020 15:17 GMT)

At the time of this writing, GBPUSD’s rate is up 76 pips (0.59%) from the hour prior. This is the 2nd hour in a row GBPUSD has seen its price head up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 20 hour moving average, resulting in them with price now being above it. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

GBPUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPUSD is down 118 pips (0.89%) since yesterday (opening today near 1.31584), marking the 4th straight day a decline has happened. Out of the 40 instruments in the Forex asset class, GBPUSD ended up ranking 39th for the day in terms of price change. The price chart of GBPUSD below illustrates.

GBPUSD

GBPUSD Technical Analysis

First things first: GBPUSD 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 28.2 pips away. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone down 8 out of the past 14 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 14 buy signals on our radar and 23 sell signals. This imputes a buy/sell ratio of 0.61, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

If we look at the RSI, it is oversold and therefore we can expect a retracement anytime….To support this move, we can also see the candlestick, the wick is being rejected from the 0.5 fib ratio hence might indicate a retracement….I will be observing the 4H timeframe and 1H timeframe to make a more informed decision – by looking at where the candlestick closes next + the RSI


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram