GBP/USD Up 23 Pips Over Past 4 Hours, 6 Day Up Streak Snapped; Pin Bar Pattern Appearing on Chart

GBP/USD 4 Hour Price Update

Updated July 24, 2020 01:05 PM GMT (09:05 AM EST)

The back and forth price flow continues for GBP/USD, which started the current 4 hour candle off at 1.2752, up 23 pips 0.18% from the last 4 hour candle. Out of the 37 instruments in the Forex asset class, GBP/USD ended up ranking 2nd for the four-hour candle in terms of price change.

GBP/USD End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of GBP/USD’s 6 day up streak; price ended the previous day down 7 pips (-0.05%) to finish the day at a rate of 1.27344. Compared to its peers in the Forex, GBP/USD gave its buyers a return that ranked 32nd in terms of percentage change since the previous day. Below is a price chart of GBP/USD.

GBP/USD Technical Analysis

The first thing we should note is that GBP/USD is now close to its 20, 50, 100 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 200 day average, which is 75 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 20 out of the past 30 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 21 buy signals on our radar and 29 sell signals. This imputes a buy/sell ratio of 0.72, which is bearish. As for the rationale, technical traders seem to be citing the appearance of double top and relative strength index technical patterns. Here’s a piece we found on fxempire.com; below is a short snippet from it to give you a taste.

GBP/USD is finding support at the trend lines and 144 ema close. The bulls remain in control but a break above the Wizz 7 level remains critical.