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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
GBP/USD Signals to End Consolidation, British Pound vs USD Price Outlook

GBP/USD Signals to End Consolidation, British Pound vs USD Price Outlook

2020-02-06 10:30:00
Mahmoud Alkudsi, Analyst
Share:

GBP/USD Price Technical Analysis

GBP/USD Price – Bulls Pullback

Last week, Cable rallied to its highest level in over three weeks at 1.3209 then closed the weekly candlestick with 1.0% gain. However, this week the market has retreated from this level after some longs seemed to cut back.

Alongside that, the Relative Strength Index (RSI) dipped below 50 signaling a possible start of downtrend move.

GBP/USD DAILY PRICE CHART (April 25, 2018 – FEB 6, 2020) Zoomed out

GBPUSD daily price chart 06-02-20 Zoomed out
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Mahmoud Alkudsi
Improve your trading with IG Client Sentiment Data
Get My Guide

GBP/USD DAILY PRICE CHART (SEP 20 – FEb 6, 2020) Zoomed IN

GBPUSD daily price chart 06-02-20 Zoomed in

From the daily chart, we noticed that on Dec 23 GBP/USD corrected its uptrend move and created a lower low at 1.2904. Since then the price stuck in a sideways move, creating lower highs with higher lows.

On Monday, GBPUSD tumbled to a lower trading zone 1.2965 – 1.3048 then closed below the 50-day average generating two bearish signals. Yet the price failed again at clearing the stubborn support level marked on the chart, reflecting that bulls were not done yet.

A close above the high end of the zone may encourage bulls to push towards 1.3300 handle. Further close above this level could end current sideways move causing a rally towards 1.3515. In that scenario, the daily and weekly resistance area and levels marked on the chart (zoomed in) should be considered.

On the flip side, a close below the low end of the zone may lead some bulls to exit the market. This could lead GBPUSD towards 1.2774. Further close below this level opens the door for bears to press towards 1.2548. That said, the weekly support area and levels printed on the chart should be monitored.

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 – FEB 6, 2020)

GBPUSD four hour price chart 06-02-20

Looking at the four-hour chart, we notice on Tuesday Cable declined and printed 1.2941-its lowest level in six weeks. The market rallied after and continued its sideways move. Today, the price eyes a test of the downtrend line originated from the Jan 31 high at 1.3209.

A break above 1.3121 may cause a rally towards 1.3175. Although, the daily resistance underlined on the chart would be worth monitoring. In turn, any break below 1.2904 could send GBP/USD towards 1.2828. Nonetheless, the weekly support level underlined on the chart should be kept in focus.

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