GBP/USD Price Recap
GBP/USD is down 80 pips (0.61%) since yesterday (with its current price near 1.29153), marking the 3rd 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 1.17% from the day prior, and up 2.6% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/USD ended up ranking 37th for the day in terms of day-over-day price change. Below is a price chart of GBP/USD.
GBP/USD Technical Analysis
Notably, GBP/USD crossed below its 100 day moving average yesterday. 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 15.2 pips away. Volatility for GBP/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone down 16 out of the past 30 days.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on GBPUSD, with 17 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 1.42, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
As seen on the chart, GBPUSD has hit support and I expect it to bounce back up….RISK: Medium to High Why: Because the candles at this point are still weak and it has hit the support before the trendline, which could indicate that it’s not going to follow the trendline anymore, or it could go back down hit the trendline then bounce back up.