(Last Updated October 6, 2020 15:17 GMT)
At the time of this writing, GBPUSD’s rate is up 26 pips (0.2%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. Most noteworthy in the world of moving averages on the hourly chart is that the 50 hour moving average has been crossed, so that price is now turning above it. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.
GBPUSD End of Day Recap
Updated 00:30 GMT (04:30 EST)
GBPUSD is up 46 pips (0.35%) since the day prior (opening today near 1.29744), marking the 2nd day in a row an upward move has occurred. Out of the 40 instruments in the Forex asset class, GBPUSD ended up ranking 13th for the day in terms of price change. Here is a price chart of GBPUSD.
GBPUSD Technical Analysis
The first thing we should note is that the current price of GBPUSD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 50 day average, which is 58.4 pips away. Volatility for GBPUSD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 90 day timeframe. Or to simplify this another way, note that out of the past 14 days GBPUSD’s price has gone up 9 them.
The View From Around the Web
Of note is that traders in aggregate have opinions on GBPUSD, with 20 buy signals on our radar and 30 sell signals. This imputes a buy/sell ratio of 0.67, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
I have this major area of resistance marked out at 1.30000, we have already seen some downside showing that price is respecting this level….I have 2 levels draw on ill be looking at buying and selling between 1.30000 and 1.27000, I expect price may move between these levels in a bit of a channel….Price is choppy as I speak and lots of fundamentals that can affect this trade so make sure your up to date with any news coming out.