GBPUSD Down 2 Pips Over Past Hour, Entered Today Down For the 2nd Straight Day; is Inching Close to 20 and 100 Day Averages

Hourly Update

(Last Updated July 14, 2021 0:21 GMT)

Currently, GBPUSD’s rate is down -2 pips (-0.02%) from the hour prior. GBPUSD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. 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 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 12 pips (0.08%) since yesterday (opening today near 1.38858), marking the 2nd straight day a decrease has occurred. Relative to other instruments in the Forex asset class, GBPUSD ranked 30th yesterday in terms of percentage price change. The price chart of GBPUSD below illustrates.

GBPUSD

GBPUSD Technical Analysis

The first thing we should note is that GBPUSD is now close to its 20, 50, 100 and 200 day averages, located at 1.3862, 1.4019, 1.3942 and 1.3786 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 20 day average, which is 23.6 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. 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. For additional context, note that price has gone down 20 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!