GBP/USD Heads Up For the 5th Day In A Row, Price Base in Formation Over Past 90 Days; is Inching Close to 20 and 50 Day Averages

GBP/USD Price Recap

GBP/USD is up 5 pips (0.04%) since yesterday (with its current price near 1.30433), marking the 5th day in a row it has gone up. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 25.7% from the day before — and down 18.16% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 15th yesterday in terms of percentage price change. Let’s take a look at price chart of GBP/USD.

GBP/USD Technical Analysis

Coming into today GBP/USD is now close to its 20, 50 and 100 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 20 day average, which is 17.4 pips away. It should be noted, though, the 50 day simple moving average turned downwards, which may be a bearish sign. Price action traders in particular will want to note that the 90 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 6 out of the past 10 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPUSD, with 14 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.08, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a divergence technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

We are currently in the wave 5 of the extended wave 3….After that we should see a wave 4 correction before the final push to the upside….After reaching the top of wave B we will the push to the downside with Wave C, which finishes the Wave 2 correction.