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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Speaker Pelosi says she has a major difference of opinion with White House administration on relief - BBG
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.85% Gold: 0.79% Oil - US Crude: -1.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nJC51ehlu4
  • The price of gold bounces back from a fresh monthly low ($1860) on the back of US Dollar weakness. Get your $XAUUSD market update from @DavidJSong here:https://t.co/kFDANiwAm1 https://t.co/yPgmAR4P8Y
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.08% 🇨🇦CAD: 0.07% 🇨🇭CHF: -0.14% 🇳🇿NZD: -0.14% 🇪🇺EUR: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/86MpRGrAms
  • Daily virus cases rise to 31,084 in Italy, new record - BBG
  • "Exquisitely Focused" Great conversation and takeaways on a call this morning with @GuyAdami and the @DailyFX, @IG_US, @Nadex teams!
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.52% FTSE 100: 0.13% Germany 30: -0.27% Wall Street: -1.23% US 500: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/f17Gw2Mdnr
  • RT @DeItaone: $DIS SAYS 11,350 UNION WORKERS TO BE LAID OFF DEC. 31
  • US Treasury Yields: 2-Year: 0.151% 3-Year: 0.194% 5-Year: 0.386% 7-Year: 0.635% 10-Year: 0.862% 30-Year: 1.642% $TNX
  • Hey traders! Wrap up your week with @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/hCkRTy4g9j
GBP/USD Faces A Stubborn Support Level, British Pound vs USD Price Forecast

GBP/USD Faces A Stubborn Support Level, British Pound vs USD Price Forecast

2020-01-29 10:40:00
Mahmoud Alkudsi, Analyst
Share:

GBP/USD Price Technical Outlook

GBP/USD Price – The Indecision Continues

Since the start of this year, GBP/USD has begun a trendless move creating higher lows with lower highs and closing the weekly candlesticks with Doji patterns signaling the market’s indecision at this stage.

Last week, Cable rallied to 1.3175 – its highest level in over two weeks. However, the market retreated from that levels and settled below 1.3100 handle.

This week, the Relative Strength Index (RSI) dipped below 50 then remained flat highlighting weak bears and weaker bulls.

GBP/USD DAILY PRICE CHART (April 25, 2018 – Jan 29, 2020) Zoomed out

GBPUSD daily price chart 29-01-20 Zoomed out
Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

GBP/USD DAILY PRICE CHART (SEP 25 – Jan 29, 2020) Zoomed IN

GBPUSD daily price chart 29-01-20 Zoomed in

From the daily chart, we noticed that on Friday GBP/USD closed below the 50-Day average providing a bearish signal. Yesterday, Cable reverted back to the lower trading zone 1.2965 – 1.3048 generating another bearish signal.

That said, a close below the low end of the zone may be required for bears to take charge. This could entice them to lead the market towards 1.2774. Yet, the weekly support levels and area marked on the chart should be considered.

In turn, a close above the high end of the zone could encourage bulls to rally GBPUSD towards 1.3300. Further close above this level may convince more bulls to join push towards 1.3515. In that scenario, the weekly resistance levels printed on the chart would be worth monitoring as some traders might join/exit the market around these points.

GBP Forecast
GBP Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 British Pound Forecast
Get My Guide

GBP/USD Four Hour PRICE CHART (DEC 23 – Jan 29, 2020)

GBPUSD four hour price chart 29-01-20

Looking at the four-hour chart, we notice that on Jan 8 started a downtrend move carving out lower highs with lower lows. However, on Jan 15 Cable corrected higher as created a higher low at 1.2984 then stuck in a sideways move. Yesterday GBP/USD broke below the downtrend line originated from the Jan 7 high at 1.3212. Since then, Cable has failed in multiple occasions to overtake this line.

A break below 1.2904 could send GBPUSD towards 1.2828. Yet, the weekly support level underlined on the chart should be kept in focus. On the flip side, a break above 1.3121 may cause a rally towards 1.3185. Nevertheless, the daily resistance underscored on the chart should be watched closely.

See the chart to find out more about key levels Cable would encounter in a further bearish /bullish scenario.

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.

DISCLOSURES