GBP/USD Up 78 Pips; in a Downtrend Over Past 90 Days
As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern.
GBPUSD
(Last Updated April 15, 2021)
Welcome to the news page for GBPUSD (GBPUSD). Below you’ll find our daily market updates. Here’s a technical and fundamental summary of where things currently stand:
Forex Calendar for GBPUSD
| metric_name | reference_period | asset_name | asset_id | date | time | forecast | outcome |
|---|---|---|---|---|---|---|---|
| United Kingdom BoE Credit Conditions Survey | NA | British Pound | GBP | 2021-04-15 | 08:30 GMT | ||
| United States Continuing Jobless Claims | 03/Apr 2021 | US Dollar | USD | 2021-04-15 | 12:30 GMT | 3700K | 3731K |
| United States Initial Jobless Claims | 10/Apr 2021 | US Dollar | USD | 2021-04-15 | 12:30 GMT | 700K | 576K |
| United States NY Empire State Manufacturing Index | Apr 2021 | US Dollar | USD | 2021-04-15 | 12:30 GMT | 19.5 | 26.3 |
| United States Retail Sales MoM | Mar 2021 | US Dollar | USD | 2021-04-15 | 12:30 GMT | 5.9% | 9.8% |
The Trend
A trend/countertrend situation exists on GBPUSD, in which a downtrend exists on shorter timeframes but an uptrend appears on the 90 day timeframe. As such, traders with short positions should be aware of the uptrend in place on the longer timeframes.
GBPUSD Moving Averages
Nuances in the trend on GBPUSD can be understood by observing the behavior of its moving averages. The 100 and 200 day averages are pointing upwards, suggesting a bullish trend, while the 20 and 50 day averages are pointing downward, suggesting a bearish trend on those timeframes. This implies that the long-term trend — meaning going back over 3 months — is bullish, while the trend over the past month and a half is bearish.
Below is a chart showing GBPUSD’s price with its moving averages.
As for assets in the Forex asset class GBPUSD has been correlated to over the past week, it has demonstrated the strongest correlation with EURCAD. If we zoom out to a two week basis, though, the asset showing the strongest correlation to GBPUSD is NZDJPY. Alternatively, EURCAD has been the asset least correlated with GBPUSD — but over the past two weeks, AUDCAD has been the asset least correlated with GBPUSD. The chart below illustrates GBPUSD against its least correlated assets.
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The View From the Weekly Timeframe
At the moment, GBPUSD’s rate is up 76 pips (0.55%) from the week prior. Moreover, note that this move is a reversal from the week prior, which saw price move down. If you’re a trend trader, consider that the strongest clear trend on the weekly chart exists on the 20 week timeframe. Looking further out, the moving averages on the weekly timeframe suggest a choppiness in price, as the are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders. GBPUSD’s weekly price action over the past 52 weeks can be seen via the chart below.
GBPUSD: The Monthly View
Monthly trend: strongest on the 24 month timeframe.
GBP/USD Up 76 Pips; Crosses 20 Day Moving Average
This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 13.84% from the day before — and down 3.3% from the same day the week before.
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
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.
GBP/USD Up 59 Pips; in a Downtrend Over Past 14 Days
Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down.
GBP/USD Moves Down For the 4th Day In A Row, Social Sentiment Biased Towards Buying; Nears 200 Day Moving Average
This imputes a buy/sell ratio of 4.67, which is bullish.
GBP/USD Heads Down For the 2nd Day In A Row; Pin Bar Pattern Appearing on Chart
The closest is the 100 day average, which is 82.1 pips away.
GBP/USD Down 10 Pips; Pin Bar Pattern Appearing on Chart
The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 21.89% from the day prior, and up 81.05% from the same day the week before.
GBP/USD Down 109 Pips; Breaks Below 20 and 100 Day Averages
The clearest trend exists on the 30 day timeframe, which shows price moving down over that time.
GBP/USD Up 79 Pips; Crosses 20 and 100 Day Moving Averages
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.
GBP/USD Moves Down For the 4th Day In A Row; is Inching Close to 100 Day Average
The closest is the 100 day average, which is 55.1 pips away.