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 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 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. Below is a price chart of GBP/USD.

GBP/USD Technical Analysis

First things first: 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. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 14 days GBP/USD’s price has gone down 8 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 17 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 1.55, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a flag technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Currently the price is testing a strong support area:1….Support level2….Maybe we┬┤ll get some strong bullish price action in this area and a buy opportunityIf you like my analyses, so please LIKE, COMMENT and SHARE!