GBPUSD Up 12 Pips Over Past Hour, Came Into Today Down For the 4th Day In A Row; Breaks Below 100 Day Average

Hourly Update

(Last Updated September 25, 2020 6:17 GMT)

At the moment, GBPUSD’s rate is up 12 pips (0.09%) from the hour prior. This move is a reversal from the hour prior, which saw price move down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

GBPUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPUSD is down 7 pips (0.05%) since the previous day (opening today near 1.27232), marking the 4th day in a row a decline has happened. Out of the 40 instruments in the Forex asset class, GBPUSD ended up ranking 25th for the day in terms of price change. Let’s take a look at price chart of GBPUSD.

GBPUSD

GBPUSD Technical Analysis

Notably, GBPUSD crossed below its 100 day moving average yesterday. 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. It should be noted, though, that a trend in the opposite direction, going down, exists on the 14 and 30 day timeframes. Or to simplify this another way, note that out of the past 14 days GBPUSD’s price has gone down 9 them. And for candlestick traders, a special treat: there are doji and pin bar patterns showing up on the charts as well. Rejoice!

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 12 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.92, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Key Points:- Daily – Divergence between lower lows and RSI lower highs- Daily – Support and resistance zone – Daily – Fibonacci 61.8 % of June low – September high- Price holding below the 200 EMA- Price holding above the 50 EMA- Trend line crossedKey Levels:Support – 1.26600, 1.27110, 50 EMAResistance – 200 EMA, 1.28747, 1.30000Entry Zone: Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals….Optimal Entry – 1.27450Supporting Entry – 1.27600Candle Reversals for entry- Bullish Hammer- Bullish Engulfing- Bullish PiercingThe Risk:As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios….Reward / Reward Targets:Optimal Entry 1.27450 – Target 1 1.28747 = 2.5x Reward to RiskOptimal Entry 1.27450 – Target 2 1.30000 = 5x Reward to RiskSupporting Entry 1.27600 – Target 1 1.28747 = 1.5x Reward to Risk Supporting Entry 1.27600 – Target 2 1.30000 = 3.3x Reward to Risk


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