(Last Updated September 10, 2020 16:17 GMT)
Currently, GBPUSD’s rate is down -78 pips (-0.6%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as GBPUSD has now gone down 4 of the past 5 hours. Regarding the trend, note that the strongest trend 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)
A moment of silence, please, for the end of GBPUSD’s 5 day down streak; price ended yesterday up 21 pips (0.16%) to finish the day at a rate of 1.30012. Compared to its peers in the Forex, GBPUSD gave its buyers a return that ranked 16th in terms of percentage change since yesterday. The price chart of GBPUSD below illustrates.
GBPUSD Technical Analysis
The first thing we should note is that GBPUSD is now close to its 20, 50 and 200 day moving averages, which may act as price barrier for the asset. 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 50 day average, which is 51.4 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 14 days GBPUSD’s price has gone down 8 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!
The View From Around the Web
We’re seeing some traders come out with interesting conviction on GBPUSD, with 16 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 0.94, which is neutral. As for the rationale, technical traders seem to be citing the appearance of divergence, flag, relative strength index and wedge technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
Brexit talks end on 15th Oct, as UK PM announced on the start of this week….Meaning of that, GBPUSD started plummeting and now it has reached one of the most crucial dynamic S/R’s of the recent history of the pair….Once the wedge is broken, then I expect aggressive selling which is likely to end at 1.23 level which is considered as major support.