GBP/USD Price Technical Forecast
GBP/USD Price – Bears Ease Up
On Feb 20, British Pound declined against US Dollar and printed 1.2848- its lowest level in nearly three months. The market rallied after, as some bears seemed to show more sway. Yet, the weekly candlestick closed in the red with 0.6% loss.
This week, the Relative Strength Index (RSI) failed to cross above 50 indicating that downtrend move was still intact.
GBP/USD DAILY PRICE CHART (April 1, 2018 – FEB 20, 2020) Zoomed out
GBP/USD DAILY PRICE CHART (SEP 16– FEb 20, 2020) Zoomed IN
From the daily chart, we noticed that on Feb 13 GBP/USD failed to rally above 1.3048 then started a downtrend move creating lower highs with lower lows. On Wednesday, the price moved to a lower trading zone 1.2774- 1.2965 eyeing a test of the low end of it.
Thus, a close below the low end of the zone may send GBPUSD even lower towards 1.2548. Nevertheless, the weekly support levels underlined on the chart (zoomed in) should be kept in focus.
On the flip -side, any failure in closing below the low end of the zone highlights GBPUSD bear’s hesitation. This could lead some of them to pull out of the market and reverse the pair’s direction towards the high end of the zone. Further close above that level, could cause a rally towards 1.3048. Needless to say, that bulls should clear this level first before take charge.
GBP/USD Four Hour PRICE CHART (FEB 7 – FEB 20, 2020)
Looking at the four-hour chart, we notice that on Feb 19 GBP/USD broke below the uptrend move originated from the Feb 10 low at 1.2872 then dropped below 1.2850. On Wednesday, the pair repeated similar scenario, as broke below the uptrend line originated from the Feb 20 low at 1.2848 eyeing a test of 1.2828.
A break below 1.2754 could send GBPUSD towards 1.2674. Although, the weekly support level marked on the chart should be considered. On the other hand, a break above 1.2988 may cause a rally towards 1.3048. That said, the weekly resistance level underscored on the chart would be worth monitoring.
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
