GBP/USD, GBP/JPY Price: British Pound Outlook- Slowing Down Uptrend Move
GBP/USD and GBP/JPY charts and analysis
Sterling Pound Price Action
Last week, GBP/USD resumed bullish price action and closed in the green for the second week in a row with a 1.7% gain. Similarly, GBP/JPY rallied to 135.20 – its highest level in seven weeks, then closed the weekly candlestick with 2.8% gain. However, this week Sterling pound buyers has shown hesitation to keep rallying the price.
On Sep 13, the Relative Strength Index (RSI) climbed from 56 to 66 on GBP/USD. The oscillator remained flat after, reflecting a slowing uptrend momentum. On the other hand, RSI has not been able to pass to the overbought territory, highlighting similar situation on GBP/JPY.
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GBP/USD DAILY PRICE CHART (Aug 30, 2017 – sep 19, 2019) Zoomed out
GBP/USD DAILY PRICE CHART (June 10 – Sep 19, 2019) Zoomed IN
Looking at the daily chart, we notice on Friday GBP/USD rushed to a higher trading zone 1.2360 -1.2785. The price rallied this week above 1.2500 for the first time in nearly two months.
Thus, the pair may be on its way for a test of the high end of the zone contingent on clearing the weekly resistance levels underlined on the chart (zoomed in). Further close above the high end could push GBPUSD towards 1.2965. Nonetheless, the weekly resistance levels marked on the chart should be watched closely.
In turn, a close below the low end of the zone, could press GBPUSD towards 1.2148. Further close below this level may see the price trading towards 1.1800. However, the weekly support area and levels underscored on the chart should be considered.
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GBP/JPY DAILY PRICE CHART (FEB 20, 2017 – SEP 19, 2019) Zoomed out
GBP/JPY DAILY PRICE CHART (May 24 – SEP 19, 2019) Zoomed in
From the daily chart, we notice on Friday GBP/JPY rallied to a higher trading zone 133.40 – 135.55 then hit 134.85 – the double bottom’s target discussed in our previous update .
Hence, a close above the high end of the zone could push the price towards 136.40. Further close above this level could see GBPJPY trading even higher towards 139.00. Although, the weekly resistance area and levels marked on the chart (zoomed in) would be worth monitoring.
On the flip-side, another failure to close above the high end of the zone, may reverse the pair’s direction sending it towards the low end of the zone. Further close below 133.34 could press GBPJPY towards the vicinity of 130.90-84. That said, sellers need to pay a close attention on the daily and weekly support levels underlined on the chart.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.