GBP/USD Down 49 Pips On 4 Hour Chart, 4 Day Up Streak Broken; Pin Bar Pattern Appearing on Chart

GBP/USD 4 Hour Price Update

Updated July 22, 2020 09:19 AM GMT (05:19 AM EST)

GBP/USD is down 49 pips (0.39%) since the previous 4 hours (opening the current 4 hour candle near 1.2675), marking the 4th candle in a row a decrease has occurred. On a relative basis, GBP/USD was the worst performer out of all 37 of the assets in the Forex asset class.

GBP/USD End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of GBP/USD’s 4 day up streak; price ended the previous day down 2 pips (-0.01%) to finish the day at a rate of 1.27294. Out of the 40 instruments in the Forex asset class, GBP/USD ended up ranking 27th for the day in terms of price change. Let’s take a look at 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 1.2564, 1.2519, 1.2439 and 1.2662 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 200 day average, which is 67 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 up. Or to simplify this another way, note that out of the past 30 days GBP/USD’s price has gone up 18 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPUSD, with 12 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.75, which is bearish. As for the rationale, technical traders seem to be citing the appearance of double top, harmonic, relative strength index, trendline and wedge technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURUSD* The technical cross-section**: Trend: 1 A strength of trend: 4 Overbought/oversold : overbuying The priority area of transactions : buyingBuying in the area of 1,1460 with a stop below 1,1400 and a profit in the area of 1,1540….GBPUSD The technical cross-section: Trend : 1 A strength of trend: 4 Overbought/oversold : overbuying The priority area of transactions: buyingBuying in the area of 1,2650 with a stop above 1,2600 and a profit in area 1,2750….USDJPY The technical cross-section: Trend: 0 A strength of trend: -1 Overbought/oversold: none The priority area of transactions: sellingSelling in the area of 107,80 with a stop above 108,30 and a profit in area 107,00.