GBP/USD Moves Down For the 6th Day In A Row; in a Downtrend Over Past 14 Days

GBP/USD Price Recap

GBP/USD is down 217 pips (1.77%) since yesterday (with its current price near 1.20516), marking the 6th 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 16.42% from the day prior, and up 2.66% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 38th yesterday in terms of percentage price change. Let’s take a look at price chart of GBP/USD.

GBP/USD Technical Analysis

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 643.8 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 14 days GBP/USD’s price has gone down 9 them.

A final note on correlations: over the past week, GBP/CHF has been the pair most correlated with GBP/USD — a common occurrence, given the presence of GBP in both currency pairs. As for pairs with the least correlation, that belongs to CAD/CHF over the past 7 days, but EUR/JPY over a two week period.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPUSD, with 36 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 2.4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Time for GBPUSD to go back to where it belongs3 Confirmations:1. Hammer Candle (Potential Bullish Engulfing Also)2. Rejected off a zone which has held for over a Year3. The RSI is very oversold after receiving heavy bearish pressure