GBP/USD Down 88 Pips

GBP/USD Price Recap

GBP/USD is down 88 pips (0.68%) since yesterday (with its current price near 1.28144), marking the 2nd day in a row a decrease has occurred. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 29.38% from the day before — and down 0.69% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 29th yesterday in terms of percentage price change. Below is a price chart of GBP/USD.

GBP/USD Technical Analysis

Notably, the current price of GBP/USD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 110.8 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days GBP/USD’s price has gone up 5 them.

A final note on correlations: over the past week, GBP/NZD has been the pair most correlated with GBP/USD — a frequent scenario, considering GBP finds itself in both pairs. Alternatively, regarding pairs with the lowest correlation to GBP/USD? Well, USD/NOK is the pair that holds that distinction for the past week, while EUR/TRY does on a two week basis.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 13 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 1.3, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Close to support lineover sold on RSIdifferent secnario see the charts for more detail