GBP/USD Makes Big Move Relative to Past Three Months, Down 248 Pips; Price Base in Formation Over Past 14 Days

GBP/USD Price Recap

GBP/USD is down 248 pips (1.94%) since yesterday (with its current price near 1.25659), marking the 3rd day in a row a decline has happened. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 48.28% from the day prior, and up 47.24% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/USD ended up ranking 32nd for the day in terms of day-over-day price change. Let’s take a look at price chart of GBP/USD.

GBP/USD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/USD crossed below its 200 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 200 day average, which is 137.1 pips away. It should be noted, though, the 200 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 10 days GBP/USD’s price has gone up 5 them.