GBP/USD Heads Down For the 2nd Day In A Row; Pin Bar Pattern Appearing on Chart

GBP/USD Price Recap

GBP/USD is down 10 pips (0.08%) since yesterday (with its current price near 1.28863), marking the 2nd day in a row it has gone down. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 21.89% from the day prior, and up 81.05% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 24th yesterday in terms of percentage price change. The price chart of GBP/USD below illustrates.

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 100 day average, which is 82.1 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 30 days GBP/USD’s price has gone down 17 them. 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

We’re seeing some traders come out with interesting conviction on GBPUSD, with 10 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.77, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price is at the support of the channel. Also, There is a strong bullish divergent at williams %R. Target: 1.35017