GBPUSD continues to run lower and below the 50% midpoint of the 2-year trading range


GBPUSD moves away from the midpoint by 50%

the GBPUSD

GBP/USD

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.
Read this term fell sharply on Friday and continues to fall today.

On Friday, the pair fell to test its 50% midpoint of the trading range since the March 2020 low (see daily chart above). This level comes in at 1.28288. The pair closed just above that level at 1.28309 on Friday.

Today this level was broken earlier in the session and trended lower. The next major target on the daily chart is at the September 23, 2020 low at 1.26737. Below that are further swing zones up to 1.2634 (see the numbered red circles and the yellow swing zone).

Moving down to the 5-minute chart below, the downward trending move over the past two days may have dropped and remained below the 100-bar falling moving average (blue line in the chart below). below).

This moving average currently sits at 1.27504 (and moving lower). Note the number of times today that price has moved to this level only to find willing sellers. Sellers like to keep the pressure on during a trending market.

In the short term, the downward tilt could see more corrective action to the upside IF this moving average can be broken, followed by a break above the 200 bar falling moving average currently at 1.2784 . Without it, and buyers do not earn. Sellers are still under firm control.

REMEMBER… trending markets are fast, directional and tend to go further than traders expect.

They also like to trap countertrend traders and hurt them.

A benchmark that the bottom may be in is a return above the short term moving averages (100 and 200 bar MA on the 5 minute chart). A move above and a hold above is a signal that the downtrend may be over (buyers and sellers more balanced). It’s the minimum. Until then, the sellers are winning and not fighting the trend.

GBPUSD

GBPUSD remains below the 100-bar moving average


cnbctv18-forexlive-benzinga

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button