GBPUSD back above 1.1100
The GBPUSD
GBP/USD
The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.
The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.
Read this Term has seen more buying momentum in the early US trading session.
The price has move back above the 1.1100 level. The price is trading above and below that natural support resistance level.
The low for the week on Monday reached an all-time low of 1.03535. The high for the week was reached earlier today at 1.12338. That is a range of about 880 pips for the week. Last week the range was over 600 pips with most of them price action to the downside. The price closed last Friday at 1.0884.
The high price today took the pair above the 61.8% retracement of the move down from the September 13 high at 1.12085. That level was also a swing level on September 22 and September 23 before the plunge to the downside on Friday and Monday of this week.
Technically, the low price today found support buyers against its broken 200 hour moving average currently at 1.1013 (see green line in the chart above). The underside of the broken trend line was also near that moving average level. The inability to break below that level gave the dip buyers some confidence for the move back to the upside.
At the 1.1100 . The price is trading between support defined by the 200 hour moving average below at 1.1013, and the 61.8% retracement and swing area at 1.12085. Overall the short-term bias is probably little in favor of the buyers above the hourly moving average levels and above the downward sloping trendline on the hourly chart above.
Having said that, looking at the daily chart below, the move higher today did extend back above its broken trend line, but the current price is now back below that level near 1.1150. The inability to reenter above that trend line is a hurdle that would need to be broken. The 50% midpoint of the move down from the August high at 1.13232 is also a target that would need to be broken to increase the bullish bias on the daily chart.
GBPUSD on the daily chart is still more bearish