GBP/USD Moves Up For the 2nd Day In A Row, in a Downtrend Over Past 90 Days; is Inching Close to 20 Day Average

GBP/USD Price Recap

GBP/USD is up 59 pips (0.46%) since yesterday (with its current price near 1.28712), marking the 2nd day in a row an upward move has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 30.2% from the day prior, but up 21.3% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 11th yesterday in terms of percentage price change. Below is a price chart of GBP/USD.

GBP/USD Technical Analysis

The first thing we should note is that GBP/USD is now close to its 20, 50, 100 and 200 day averages, located at 1.2921, 1.3009, 1.2982 and 1.2695 respectively, and thus may be at a key juncture along those timeframes. 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 50.1 pips away. 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. Or to simplify this another way, note that out of the past 10 days GBP/USD’s price has gone down 6 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPUSD, with 8 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 0.44, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Head and Shoulders