British Pound Price: GBP/USD, GBP/JPY at a Crossroads After Brexit Proposal
GBP/USD and GBP/JPY charts and analysis
Sterling Pound – Correcting Lower
The Relative Strength Index (RSI) fell crossed below 50 highlighting the end of the uptrend momentum with a possible start of downtrend move.
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GBP/USD DAILY PRICE CHART (Aug 20, 2017 – Oct 03, 2019) Zoomed out
GBP/USD DAILY PRICE CHART (March 10 – Oct 3, 2019) Zoomed IN
Looking at the daily chart, we notice on Sep 25 GBP/USD declined to a lower trading zone 1.2150 -1.2360 eyeing a test of the low end of it. At the start of the month, sellers showed hesitation pulling back above 50-day average.
Hence, any close above the high end of the zone could push GBP/USD towards 1.2550. Although, the daily and weekly resistance underscored on the chart (zoomed in) need to be watched closely. Check the chart to know more about key levels in a further bullish move.
On the other hand, a close below 50-day average would be a bearish signal. Further close below the low end of the zone could see GBPUSD trading towards 1.1800. Nevertheless, the weekly support levels underlined on the chart would be worth monitoring.
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GBP/JPY DAILY PRICE CHART (Jan 4, 2017 – Oct 3, 2019) Zoomed out
GBP/JPY DAILY PRICE CHART (May 24 – Oct 3, 2019) Zoomed in
From the daily chart, we notice on Sep 25 GBP/JPY moved to a lower trading zone, since then the price has been declining towards the low end of current trading zone 130.90 – 133.40 as discussed in our last update.
Thus, if sellers clear the support area (between 50- day Average and 130.84) then any close below 130.84 could press GBPJPY towards the vicinity of 129.00-128.80. That said, sellers should pay a close attention to the weekly support levels marked on the chart (zoomed in).
On the flip-side, any failure in clearing the support area may reveres current direction sending GBPJPY towards the high end of the zone. See the chart to know more about higher trading zone/s with the key levels to consider in a further bullish move.
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.