GBP/USD and GBP/JPY charts and analysis
- British Pound price action against US Dollar and Japanese Yen.
Download for free our latest Q3 trading guides to help you build confidence when you trade on JPY, USD and other main currencies
Sterling Pound – Correcting Lower
At the start of the month, GBP/USD corrected lower creating a lower low at 1.2205. Similarly, GBP/JPY traded lower creating a lower high at 133.36.
The Relative Strength Index (RSI) fell crossed below 50 highlighting the end of the uptrend momentum with a possible start of downtrend move.
Just getting started? See our Beginners’ Guide for FX traders
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.
Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make
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
