(Last Updated September 7, 2020 15:17 GMT)
At the time of this writing, GBPUSD’s rate is up 2 pips (0.02%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. As for the trend on the hourly timeframe, we see the clearest trend on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on GBPUSD. Given that we see downtrend 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 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 3 pips (0.03%) since the previous day (opening today near 1.32759), marking the 3rd straight day a decrease has occurred. Relative to other instruments in the Forex asset class, GBPUSD ranked 20th the previous day in terms of percentage price change. 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 day averages, located at 1.3182 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 93.6 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 17 out of the past 30 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.
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 18 sell signals. This imputes a buy/sell ratio of 0.83, which is neutral. As for the rationale, technical traders seem to be citing the appearance of channel, divergence, flag and head and shoulders technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
in that analysis, we also said that we have a strong zone on way WHICH SHOULD BE WORK BUT DIDNT….now we have another zone (black zone) that is able to react strongly, Aiming to create a head and shoulder pattern….If this prediction occurs, then we can expect the chart reach the red flag by the presented pattern on the chart that is another interesting opportunity to get into another position, this time a beautiful short.