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GBPUSD is trading at a new low for the week but not for long


GBPUSD failed on a break to new lows today

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 so 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 so 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 to a new daily and weekly low of 1.21543. The move lower has eliminated yesterday’s low at 1.2165. Moving up further, the breakout also took the price back below the swing low as it rallied back to May 22, 2020 at 1.21591.

However, the momentum could not be sustained during these breakouts, and the price has since returned above these breakout levels and is currently trading at 1.2208.

Is failure a reason to buy?

Yesterday, the low of May 22, 2020 found a taker. Today the price moved higher during the Asian session and early European session before reversing lower. Nonetheless, support buyers tried to hold above these levels only to then give way.

This pause should have led to an increase in sales momentum. However, that was not the case. As a result, traders can lean back again, cross their fingers, and hope for a corrective rally on Friday after this week’s decline.

On the upside, a move above the daily high at 1.2231 followed by a 38.2% retracement of the decline from Monday’s high at 1.22501 would give buyers a little more comfort. The decline in the 100 hourly moving average at 1.22767 and the 50% midpoint of the week’s trading range just above that level at 1.22798 would also indicate a market that has bottomed out and is ready for more corrective polls.

Looking at the daily chart, also watch the 1.2260 to 1.22653 area. These levels represent oscillating lows dating back to the end of June 2020. Earlier this week, the price held support against these levels before giving way on Wednesday. Getting back above would be a positive development for short-term GBPUSD traders. Below

GBPUSD

GBPUSD on the daily chart tests 2020 swing lows

Certainly, if the failure is a background, buyers are not off the hook. They are simply trying to catch what has been a falling knife (see daily chart) with defined risk against certain multi-year lows. If the price cannot rise above 1.2260-65. If the price cannot reach and stay above the 100 hourly MA and 50% of the weekly range, the buyers do not win.

So keep that mindset in mind. It’s just a gunshot. Shots are also missing (as evidence of the failed break on the downside today).


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