GBP/USD Down 1 Pips On Hourly Chart, Breaks Above 20 Day Average; in a Downtrend Over Past 30 Days

Hourly Update

(Last Updated October 5, 2020 16:26 GMT)

At the time of this writing, GBPUSD’s rate is down -0.0001 (-0.01%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved up. Regarding the trend, note that the strongest trend exists on the 20 hour timeframe. Price action traders may also wish to note that we see some doji and pin bar candlestick patterns on GBPUSD. Given that we see an uptrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

GBPUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for GBPUSD, which started today off at 1.29287, up 45 pips 0.35% from the day prior. Compared to its peers in the Forex, GBPUSD gave its buyers a return that ranked 5th in terms of percentage change since the day prior. Here is a price chart of GBPUSD.

GBPUSD

GBPUSD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBPUSD crossed above 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 55 pips away. Volatility for GBPUSD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed up. For additional context, note that price has gone up 6 out of the past 10 days.