GBP/USD Up 79 Pips; Crosses 20 and 100 Day Moving Averages

GBP/USD Price Recap

GBP/USD enters today at 1.3005 in US dollars, up 79 pips (0.61%) from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 8.08% from the day prior, and up 59.58% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/USD ranked 3rd yesterday in terms of percentage price change. The price chart of GBP/USD below illustrates.

GBP/USD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/USD crossed above its 20 and 100 day moving averages 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 20 day average, which is 18.7 pips away. Volatility for GBP/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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. Or to simplify this another way, note that out of the past 14 days GBP/USD’s price has gone up 7 them.

A final note on correlations: over the past week, GBP/USD has been most correlated with USD/JPY — a frequent scenario, considering USD finds itself in both pairs. On the flip side, in terms of pairs with the least correlation to GBP/USD, USD/JPY is the pair that holds that distinction for the past week, while USD/HKD does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPUSD, with 5 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.31, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com that we thought you might enjoy.