GBP/USD Down 3 Pips in Last 4 Hours, 6 Day Up Streak Ended; Pin Bar Pattern Appearing on Chart

GBP/USD 4 Hour Price Update

Updated July 24, 2020 09:07 PM GMT (05:07 PM EST)

GBP/USD entered the current 4 hour candle at 1.2787, down 3 pips (0.02%) from the last 4 hour candle. Compared to its peers in the Forex, GBP/USD gave its buyers a return that ranked 24th in terms of percentage change since the last 4 hour candle.

GBP/USD End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of GBP/USD’s 6 day up streak; price ended yesterday down 7 pips (-0.05%) to finish the day at a rate of 1.27344. Compared to its peers in the Forex, GBP/USD gave its buyers a return that ranked 32nd in terms of percentage change since yesterday. The price chart of GBP/USD below illustrates.

GBP/USD

GBP/USD Technical Analysis

Coming into today GBP/USD is now close to its 20, 50, 100 and 200 day averages, located at 1.2595, 1.2536, 1.2445 and 1.2659 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 200 day average, which is 75 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 10 days GBP/USD’s price has gone up 7 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 15 buy signals on our radar and 22 sell signals. This imputes a buy/sell ratio of 0.68, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and double top technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

SHORT GBP/USD, IF*** there is a clear rejection at the current level, wich is on the 1,28000 weekly key level (psychological level)….The market reached a weekly key level, wich should act as resistance and the RSI is indicating that the market is close to being overbought….IMPORTANT : I am only showing an analysis on one of the many timeframes that I use.