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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Breaking news

Federal Reserve Announce $2.3 Trillion in Loans to Support Economy

Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 4.22% Silver: 2.57% Gold: 2.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aLOug7Zqhq
  • Fed Chair Powell: - Ability to lend and create money is only limited by the law - BBG
  • Fed Chair Powell: - Expecting Q2 to be very weak - Recovery should be quick when people start returning to work $DXY
  • New York Fed Purchases $6 B in Treasury Coupons
  • Heads Up:🇺🇸 USD U. of Mich. Sentiment (APR P) due at 14:00 GMT (15min), Actual: N/A Expected: 75.0 Previous: 89.1 https://www.dailyfx.com/economic-calendar#2020-04-09
  • Merkel: - Measures to slow virus will not likely need tightening
  • Merkel: - Spread of virus shows signs of slowing in Germany
  • Alongside reports that UK Prime Minister Boris Johnson’s health is improving after he contracted Covid-19 and was moved to an intensive care unit, that should give $GBPUSD a near-term boost. Get your GBP/USD market update from @MartinSEssex here: https://t.co/hhgLDWnX60 https://t.co/aLlYpmWhdk
  • Mnuchin: - Pres. Trump will address more hospital aid in next bill - New Fed facilities will create up to $2.3 T of liquidity - Fed facilities will be flexible
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.76% France 40: 1.65% Wall Street: 1.52% US 500: 1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tM96Oq3y4W
GBP/USD: May Trade Even Lower Below This Price, British Pound vs USD Outlook

GBP/USD: May Trade Even Lower Below This Price, British Pound vs USD Outlook

2020-02-28 10:30:00
Mahmoud Alkudsi, Analyst
Share:

GBP/USD Price Technical Forecast

  • GBP/USD bears ease up, yet stay in charge
  • GBP vs USD chart points out a slow downtrend move

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

GBPUSD daily price chart 28-02-20 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 16– FEb 20, 2020) Zoomed IN

GBPUSD daily price chart 28-02-20 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 Forecast
GBP Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 British Pound Forecast
Get My Guide

GBP/USD Four Hour PRICE CHART (FEB 7 – FEB 20, 2020)

GBPUSD four hour price chart 28-02-20

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

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

DISCLOSURES

News & Analysis at your fingertips.