Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
GBP/USD Technical Analysis: Pound to Resume 12-Year Decline?

GBP/USD Technical Analysis: Pound to Resume 12-Year Decline?

Ilya Spivak, Head Strategist, APAC


  • British Pound may be ready to resume 12-year downtrend vs. US Dollar
  • Possible top formation signaled by Bearish Engulfing candlestick pattern
  • Daily close below neckline support sought to confirm initial breakdown

The British Pound may be on the cusp of resuming a downtrend in play against the US Dollar for over 12 years. The weekly chart reveals a dramatic Bearish Engulfing candlestick pattern produced at the intersection of falling trendline resistance and a horizontal barrier capping the upside since mid-September 2018, located in the 1.3300-81 area. This may prove to mark a top, ratifying a gloomy fundamental backdrop.

British Pound vs US Dollar price chart - weekly

GBP/USD weekly chart created with TradingView

GBP Forecast
GBP Forecast
Recommended by Ilya Spivak
Get Your Free GBP Forecast
Get My Guide

Zooming in to the daily chart, the makings of a reversal might be taking shape. Prices have broken past support traced along swing highs establishing the rise from early September 2019, lading atop a neckline limiting progress lower since November. A daily close below that seems likely to open the door for initial downside follow-through targeting the 1.2763-84 inflection region.

British Pound vs US Dollar price chart - daily

GBP/USD daily chart created with TradingView

Neutralizing immediate selling pressure probably requires a breach and close above steep falling resistance extending down from the December 13 high, now squarely at the 1.31 figure. Invaliding the broader case for long-term topping probably needs the bulls to show greater conviction however. Securing a foothold above 1.3381 would go a long way in that direction.


GBP/USD Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -10% 8% -2%
Weekly -32% 44% -8%
What does it mean for price action?
Get My Guide


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.